Earnings watch: GB Auto, EIPICO, ADIB, Credit Agricole Egypt report 1Q2020 results
EARNINGS WATCH- GB Auto posted net profits of EGP 138.4 mn in 1Q2020, soaring 430.6% y-o-y from EGP 26.1 mn during the same quarter last year, according to an earnings release (pdf). Revenues during the quarter inched up 0.8% to EGP 5.89 bn. The company’s auto and auto-related (A&AR) segment’s revenues dipped 4.1% y-o-y to EGP 4.7 bn, but reversed a bottom-line loss of EGP 93.1 mn during the same quarter last year. The segment’s revenues is “a marked improvement considering the low seasonality associated with the first quarter of the year as well as the challenging external environment caused by the covid-19 outbreak towards the end of the quarter.”
The government’s covid-19 lockdown measures — including shutting down traffic departments — began weighing on passenger car demand in mid-March “and further compounded existing regulatory constraints that were pressuring the three-wheeler division.” The pandemic has hindered the company’s “path toward a strong rebound” that began at the outset of 2020, CEO Raouf Ghabbour said.
Looking ahead: “We anticipate short-term repercussions on demand levels and business performance in the coming months,” Ghabbour said, noting the company has shelved its capex plans for the year. Demand is already picking up at the company’s showrooms