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2012 ANNUAL REPORT
33
Tires
GB Auto has been among Egypt’s lead-
ing tire dealers for more than 50 years
and distributes passenger car, van, bus,
construction equipment and light-truck,
truck and bus-truck tires under license
with Turkey’s Lassa, Japan’s Yokohama
and China’s ZC Rubber-brand Westlake,
Triangle, Diamond Back, Rotalla and
Grandstone. An increasingly important
source of Group revenue, in 2013 this
line of business announced that it has
successfully concluded agreements that
will see it expand from Egypt to cover
Libya, Algeria, Iraq and Jordan, as well as
diversify the company’s product offerings
in Egypt.
The Tires line of business is an in-
creasingly important contributor to the
company’s revenue and profitability
stream, through both increased sales
and growing foreign currency sales in an
environment of devaluation in GB Auto’s
home market of Egypt.
2012 Business Review
• The Tires line of business reported a
standout performance in the year, with
a 77.5% increase in revenue over 2011.
• Strong sales reflect management’s
ability to leverage its relationships with
its suppliers to secure better quantities
for the local market in Egypt, as well
as a shortage of foreign exchange
liquidity, which acted as a deterrent to
small traders seeking to secure their
requirements, thus enabling GB Auto to
replace a significant portion of parallel
imports.
• Management anticipates that these
domestic market conditions will
continue in the coming period and is
accordingly working to capitalize on
them to increase its Egyptian market
share.
• Going forward, management
expects the contribution from
expansion territories and new brand
representations to be on-par with
Egypt’s sales growth.
290.1
163.4
75.1
62.7
111.7
‘08
‘10
‘09
‘11 ‘12
Tires Revenues by Year
(LE Million)