Ghabbour Auto (GB) released its segment and consolidated results for the second quarter (2Q) and the first half (1H) of 2022 on Monday, recording stable revenue quarter-on-quarter but increasing by 7.8% year-on-year to 7 .8 million EGP in 2Q22 despite the difficult environment. operating conditions.
These figures reflect resilient consumer demand and improved pricing strategies across GB’s business lines.
Net profit increased by 113.7% quarter-on-quarter due to a large foreign exchange loss impacting Q1 2022 and by 31.3% year-on-year to reach EGP 490.5 million, the company continuing to benefit from its overall operational efficiency initiatives, as well as the operational leverage resulting from the increase in revenues.
On a YTD basis, revenue increased 11.2% year-on-year to EGP 15.6 million and net profit increased 7.1% year-on-year to EGP 719.9 million in first half of 2022.
“Our performance in 2Q 2022 was supported by strong demand for our product and service offerings as well as prudent strategies to guide us through an increasingly challenging operating environment,” said Nader Ghabbour, CEO of GB.
“We started the year on a stronger footing with increased inventory levels to hedge against rising shipping costs, supply chain challenges and global semiconductor shortages; challenges which have been further exacerbated by the devaluation of the EGP in March 2022 and restrictions on imports.
“Nevertheless, the Auto & Auto-Related segment’s optimized product portfolio and improved pricing strategy continued to support our operations and drive GB’s growth in 2022,” he added.
“Difficult conditions are expected to persist for several quarters; however, we are confident in our ability to respond effectively to changing dynamics and pursue our growth objectives once economic conditions improve,” he said.
GB Capital recorded revenue growth of 18.7% YoY and 27.2% YoY to EGP 2.3m in 2Q 2022 as strong demand positively impacted GB Capital subsidiaries the society. On a YTD basis, revenue increased 21.4% YoY to reach EGP 4.3m in 1H 2022. G
Meanwhile, GB Capital’s loan/receivables portfolio grew by 2.4% YoY and 16.3% YoY to reach EGP 16.1 billion in 2022.
Ultimately, GB Capital’s net profit increased by 127.1% YoY and 92.8% YoY to EGP 276.9 million in 2022. On a cumulative basis, net profit of GB Capital rose 50.8% year-on-year to reach EGP 398.8 million in the first half of 2022. noting that performance was positively impacted by Tasaheel securitization earnings.
“GB Capital – our financing businesses – delivered a remarkable performance in 2Q 2022 in a particularly challenging operating environment. The segment capitalized on strong demand for its range of products and services to achieve portfolio growth and achieve multiple operational initiatives,” said Ghabbour.
“At GB Auto Rental – formerly known as Haram Tourism Transport – we have continued to add vehicles to our fleet and are on track to meet our 2022 target. We are also delighted to finalize prospecting agreements who will support our rental operations and ensure a strong pipeline at GB Lease and GB Auto Rental in the periods ahead.
“On the digital front, Drive’s consumer finance app Forsa has been gaining momentum since its launch in Q4 2021. Additionally, Drive was the first consumer finance company to issue a bond of worth EGP 700 million,” he added.
“Finally, MNT-Halan’s innovative buy-now-pay-later digital consumer credit product saw significant growth in the quarter, further strengthening our position in fintech. We are well positioned to continue executing our digital growth strategy going forward, leveraging our position in the fintech market and delivering innovative financing solutions,” he said. concluded.
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