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Monday, 17 May 2021

GB Auto net income doubles in 1Q amid higher demand

GB Auto’s net income more than doubled to EGP 299 mn in 1Q2021 compared to EGP 138 mn in the same quarter last year, according to the company’s earnings release (pdf). Revenues rose 16% to hit EGP 6.8 bn during the quarter, compared to EGP 5.9 bn a year earlier, off the back of “pent up demand and strengthening purchasing power,” according to CEO Nader Ghabbour. The growth despite both the impact of low season and a global semiconductor shortage that has affected the company’s supply chains, Ghabbour said.

Moving forward: “We expect the continuation of the strong start of the year, particularly as market conditions continue to improve and consumers normalize to the covid-19 situation,” Ghabbour said, highlighting the accelerating pace of the vaccine rollout worldwide. The planned launch of GB Auto factoring arm Drive’s mobile application in 2H2021 is likely to further boost the company’s growth trajectory. The company also aims to expand its auto and auto-related segment as well as GB Capital, and expects the effect of the global chip shortage on its operations to diminish by the end of the year.

Egypt Kuwait Holding’s (EKH) attributable net income rose 41% y-o-y to USD 42.7 mn in 1Q2021, up from USD 27 mn during the same quarter last year, according to an earnings release (pdf). EKH’s 1Q2021 top line came in at USD 191.9 mn, compared to USD 146.6 mn in 1Q2020, up 19% y-o-y, which the company says was driven primarily by “the fertilizer and petrochemical segment’s solid performance, driven by rallying urea and commodities prices for the period.” The rally was underpinned “by a normalization of market conditions with the roll-out of COVID-19 vaccines and easing restrictions,” Chairman Moataz Al-Alfi said.

Looking ahead, the market recovery and improved commodity prices will leave EKH “well-positioned to carry forward our strong momentum from the start of the year,” Al-Alfi said. The company has earmarked USD 75 mn in capex spending, including investing in new platforms and drilling campaigns, at its subsidiary Offshore North Sinai to capitalize on growing gas consumption, said CEO Sherif El-Zayat. EKH is also moving steadily towards bringing its sulphuric acid factory at Sprea Misr online by mid-2022, El-Zayat said.

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