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GBAuto saw total salea revenue decrease 23.0%y-o-y in 4Q15
and 0.5% y-o-y in FY 2015, mainly as a result of the challeng-
ing FX environment in Egypt (especially towards the end of
the year) as well as the turbulent Iraqi market (throughout FY
2015). In Egypt, the Passenger Car division’s decrease in sales
was compensated by the Two- and Three-Wheeler division,
the Commercial and Construction Vehicles division, as well
as our Financing businesses. Despite the decrease in sales in
4Q15, our gross profit margins were quite strong y-o-y, as we
reportedGPMs of 15%in 4Q15 vs. 11.8%in 4Q14 as a result of
price increases the group introduced in the quarter. Full year
profitability also improved, as we ended the year at a GPM of
13%.
Overall, our operating profit decreased 30.5% y-o-y while
our net profit showed a 34.4% increase compared to 2014 on
the back of a one-time gain from the fair value reassessment
of an investment property reported in 3Q15, as well as lower
taxes paid due to a weak 4Q15 and an overall lower tax rate
of 22.5%. The positive minority interest reported throughout
the year is mainly due to the reported regional losses, espe-
cially in Iraq where low oil prices have taken their toll on the
economic situation, in addition to the regional over-supply
situation, with spillovers mainly affecting Iraqi operations.
On the cash front, the company has used most of its cash
generated throughout the year (funds from operations in
the first nine months of 2015 amounted to LE 622.5 million
in addition to outstanding cash balances that stood at LE
2.2 billion at the end of 3Q15) to build inventory later in
4Q15, which will boost performance during 2016. We have
now replenished most of our Passenger Car stocks, as well
Management
Review and Financial
Performance
Group Revenues
Group EBITDA
12.3
bn
1.0
bn
Group Gross Profit
1.6
bn
13
%
Group Gross Profit Margin
Group Net Profit Margin
1.9
%
Other Revenues
Group Net Profit
Passenger Car Revenue
L.E
L.E
MN
BN
233.1
7.5
Tires Business Revenue
324
L.E
BN
Motorcycles and Three-Wheel-
ers Revenue
1.9
Commercial Vehicles
and Construction Equipment
Financing Business Revenues
L.E
L.E
L.E
L.E
BN
MN
BN
MN
1.3
1.0 79.0
2015 Financial Highlights
8 | GB Auto |
2015
Management Review and Financial Performance