EARNINGS WATCH- GB Auto reported a consolidated net profit of EGP 148.1 mn in 2Q2018, up 340.0% q-o-q from EGP 33.5 mn in the last quarter, according to a the company’s earnings release (pdf). Top line for the quarter rose 45.8% y-o-y to EGP 6.1 bn, up from EGP 4.8 bn in 2Q2017. “Market demand has by every measure surpassed our most bullish expectations during 2Q18, and we are seeing a strong recovery in the Auto and Auto Related businesses that is indicative of strong consumer resilience,” said GB Auto CEO Raouf Ghabbour. “Macro and market indicators today show a healthy economy that has turned a corner toward sustainable growth,” he added. Looking ahead, the company sees further improvements heading into 2H2018 during which demand is seasonally higher. “As this momentum continues, GB Auto stands as a transformed group with a leaner, more efficient operation that is ideally positioned to capture the upside,” Ghabbour said.

In other GB Auto news, the company’s board of directors approved plans to sell a 20% stake in its Netherland-based subsidiary MNT Investments BV, GB Auto said in a regulatory filing (pdf). The value of the transaction was not disclosed.