Business

GB Auto’s full-year net income drops 46.7% on year

GB Auto reported on Wednesday net income came in at LE116 million, down 46.7 percent y-o-y.  The board of directors recommended withholding dividends for the for FY2013.
 
Beltone Financial says in a recent study, As expected, GB Auto posted a relatively weak set of results in FY2013.
 
GB Auto's revenues coming in at LE9,127 million in  FY2013, up 10.1 percent y-o-y from LE8,290 million. Gross profit came in at LE1,170 during the year, translating to a GPM margin of 12.8 percent versus 12.9 percent in FY2012.
 
"Overall, the weak results were due to poor 2Q2013 and 3Q2013 performance as a result of six factors: Hyundai’s pressured market share, which was offset by increased demand on Geely, a change in Iraqi regulations that impacted volumes and margins, weaker three-wheeler sales, which was expected on higher customs (GB Auto decided to absorb a portion of the customs hike to protect sales volume since this is a price-sensitive product), SG&A continuing to be pressured y-o-y by regional expansion, a trend that started in 1Q2013, high net financing costs, mainly related to its regional expansion, and macroeconomic challenges in Egypt and dampened consumer sentiment", Beltone Financial said.

Related Articles

Back to top button