Egyptian auto tycoon Raouf Ghabbour’s GB Auto posts $37.6 million in profit in H1 2022

GB Auto has reported a profit of EGP720 million ($37.6 million) after a very challenging half-year period characterized by inflationary pressures and supply chain disruptions.

According to figures from the leading Egyptian automobile manufacturer’s recently published financial results, its profit increased by 7.1 percent in the first half of 2022 — from EGP672.3 million (35.1 million) to EGP720 million ($37.6 million) — driven by a double-digit 11.2-percent increase in revenue from EGP14.1 billion ($736.3 million) to EGP15.7 billion ($820 million).

The double-digit increase in earnings can be attributed to the strong financial performance of the group’s commercial vehicle and construction equipment financing business and a 30-percent increase in its tire sales, which offset the reduced revenues in its motorcycle and three-wheeler segments.

GB Auto CEO Nader Ghabbour stated that the group’s financial performance in the second quarter of the year was supported by strong demand for its products and services, as well as prudent strategies to navigate the increasingly challenging operating environment.

“We started off the year on stronger footing with increased levels of inventory to hedge against rising shipping costs, supply chain challenges and the global semiconductor shortage,” he said. “Nonetheless, the auto and auto-related segment’s optimized product portfolio and enhanced pricing strategy continued to support our operations and drove GB Auto’s year-on-year growth in 2022.”

Ghabbour added that he is confident in the group’s ability to effectively respond to today’s changing economic dynamics and continue to meet growth targets once the economy improves.

Raouf Ghabbour, one of Egypt’s wealthiest men, is the driving force behind GB Auto. Since its inception in 1985, it has grown into a top car assembler and distributor in the Middle East and North Africa.

The wealthy Ghabbour family owns 62.9 percent of the automaker.

As of press time, the group’s shares were trading at EGP3.21 ($0.168) per share, 94 basis points higher than their opening price on the Egyptian Stock Exchange this morning.

The group’s market capitalization is presently EGP3.5 billion ($182.7 million), while the Ghabbour family’s 62.9-percent stake is worth EGP2.21 billion ($115.4 million).