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36 • 2017 ANNUAL REPORT
2017 ANNUAL REPORT • 37
Beyond its home market of Egypt, GB Auto distrib-
utes CBU units of Hyundai passenger cars in Iraq and
Geely passenger cars in Algeria, and offers after-sales
services in both markets. Additionally, the company
launched a successful venture for Bajaj Motorcycles
& Three-Wheelers in Iraq, where it also operates two
after-sales service centers for its products. It is also ac-
tively working to build Iraq’s foremost after-sales fran-
chise based on the Egyptian model. GB Auto’s regional
operations also extend to the tires division, with the
company distributing Westlake, Diamondback, and
Jumbo tires in Iraq; Avon, Diamondback, Triangle, and
Jumbo in Jordan; and Lassa, Grandstone, and Verde
in Algeria. Despite the challenging environment seen
regionally throughout 2017, the company continued to
take measured steps in dealing with these geopolitical
and economic difficulties.
2017 Business Review
Passenger Cars
Iraq
In Iraq, GB Auto saw passenger car volumes ramping
up with the company benefiting from having reduced
overheads, finance charges, and old stocks to safeguard
its positioning in the market and navigate the turbulent
political climate. The Iraqi Passenger Car division saw
volumes grow 33.2% y-o-y to 7,465million with revenues
surging 151.3% y-o-y to LE 2,256.1 million. The After-
Sales division in Iraqdeliveredequallypromising results,
with revenues up 125.7% y-o-y to LE 241.7million.
Algeria
GB Auto’s lean cost-cutting approach toward its Alge-
rian operations continued to sustain margins during
the year despite lowered volumes. Revenues from the
Passenger Car division gained 139.5% y-o-y to LE 61.6
million, while the company launched its agro tire brand
Verde to the market with great success. Management
remains watchful of any opportunities that arise in the
market and expects to soon make an announcement
on developments in Algeria.
Motorcycles & Three-Wheelers
Iraq
Results from Iraqi operations were very promising this
year, showing considerable growth y-o-y in terms of
both sales volumes and revenues. Management had
launched sales of these popular vehicles in Iraq in 2015
to a promising market reception and anticipates that it
will be able to replicate the success of its home market
in Iraq. GB Auto operates a small service center and
spare parts outlet in Baghdad and has added a second
in Al Najaf that also includes a Bajaj showroom.
Egypt
Regional
Egypt Regional
Total Regional Revenue
(LE million)
2013
2,889.3
2014
1,544.6
2016
2015
1,201.4
2,821.1
2017
2,940.8
Tires
GB Auto’s regional Tires division reported a promis-
ing increase in revenues throughout the year, gaining
31.7% y-o-y to LE 135.3 million. The division provides a
much-needed source of high-margin business to navi-
gate the rocky economic and political environment in
the region as other lines of business gain steam.
Group Operating Profit
0.8
LE
BN
GB Auto takes a
measured approach
to its regional
operations, being
mindful of geopolitical
circumstances on the
ground.
5.7
%
of FY17 Group
Gross Profit