GB Auto achieves LE 5.5B in revenues in Q4 of 2017

CAIRO – 6 March 2018: Ghabbour Auto (GB Auto) achieved LE 5.5 billion in revenues during the fourth quarter (Q4) of 2017, driven by growth in most production lines, a report by Pharos Research showed.

Revenues of passenger cars increased by 10 percent quarterly and 17.5 percent annually, driven mainly by the increase in prices.

Car sales’ contribution to revenues increased by 42 percent in the fourth quarter, compared to 27 percent in the third quarter.

The company’s margins reached 9.1 percent, dropping by 50 points quarterly. The drop came on the back of the losses incurred by the company in its regional production lines, the report said

Inventories amounted to LE 3 billion in Q4 of 2017, down from LE 6.8 billion in Q1. The company reduced debt by LE 2.4 billion in Q1 to stand at LE 4.13 billion.

The company plans to channel part of the inventories to secure higher margin completely built up (CBU) models in an attempt to regain profitability.

Ghabbour expects passenger car prices to reach LE 120,000 in 2018 and it targets 30 percent market share, the report added.

Ghabbour is an Egypt-based company that is focused on automotive assembly, manufacturing, sales and distribution, financing and after-sales services.

The company operates through five segments: the Passenger Cars segment, the Motorcycles & Three-Wheelers segment, the Commercial Vehicles & Construction Equipment segment and the Tires segment.