EARNINGS WATCH- Leading automotive assembler GB Auto reported a consolidated net loss of EGP 150.9 mn in 2Q2017, compared to profit EGP 124.4 mn in the comparable period last year, according to the company’s earnings release (pdf). This came despite a 6.3% y-o-y rise in total Group revenues to EGP 4.2 bn during the quarter, driven largely by growth in the company’s motorcycle business and financing arm and other ancillary businesses, which balanced out the drop in the passenger car segment. “The Group recorded revenue gains for both the three and six-month periods even as the core automotive business continues to operate in a challenging environment,” the release said. “Bottom-line profitability was muted by high interest expenses following the CBE’s successive rate hikes since the float.”

GB Auto is also sending a message that it sees its shares are undervalued, noting in its earnings release that it is now separately reporting “the core automotive and high-margin Financing Businesses. The two businesses are sharply different in terms of financing and capital structure as well as underlying risks.” The new disclosure structure, it says, “will provide a true reflection of the business’s net debt, facilitate more accurate valuations and reveal hidden value in the company’s share.”

GB Auto will be holding its 2Q2017 results conference call on Monday, 14 August at 4:00 pm CLT.