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GB Auto profit jumps 50% in 2014

GB Auto profit jumps 50% in 2014
Photo Credit: Arabianeye-Reuters
GB Corp
GBCO
0.98% 12.32 0.12

GB Auto, a leading automotive assembler and distributor in the Middle East and North Africa, announced on Sunday its consolidated results for the fourth quarter of the fiscal year 2014, reporting an increase by 23.9% year-over-year in revenues to EGP 3,491.5 million.

Q4 net profits dropped 28.9% y-o-y to EGP 32.1 million on the back of FX loses and higher tax rates, with net margins coming in at 0.9%.

Meanwhile, FY14 revenues rose 35.0% to reach EGP 12.3 billion compared with FY14, while net profits rose 50.0% to EGP 174.0 million, with net profit margin steady at 1.4%.

Commenting on the results, CEO Raouf Ghabbour said he is both very pleased with his company’s performance in 2014, adding that he is bullish on sales prospects going forward.

“This holds not just in our home market of Egypt, but also in new export markets we have entered via GB Polo and those we will target in the medium and long term via our startup motorcycle, three-wheeler and tires manufacturing operations,” said the top official.

He added that the new manufacturing plants will be funded in part via GB Auto’s ongoing capital increase and will mark an important inflection point in its ongoing strategy to diversify by both product line and geography.