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results during 2015, as it continued on its gradual growth
trajectory. Revenues for the year reached LE 433.9 mil-
lion, an increase of 15.9% y-o-y. While the division’s gross
profit rose by 26.7% to LE 150.7 million. Management ex-
pects After-Sales to remain highly profitable and continue
yielding excellent returns. GB Auto intends to establish
additional after-sales outlets in new locations, primarily
underserviced areas such as Upper Egypt and the North
Coast, to meet the ever-increasing capacity that has nearly
doubled over the last two years.
Iraq
GB Auto continues to operate in the Iraqi market despite the
adverse geopolitical conditions that negatively impacted
our operations in the country. Revenues from the market
came in 50.9% lower y-o-y for the full year of 2015 on the
back of a 44.0%decrease in sales volumes, largely due to the
country’s sluggish economic backdrop, affecting market de-
mand as well as oversupply problems. Despite the weaken-
ing demand for Passenger Cars, however, Iraqi After-Sales
performed well during 2015, recording revenues of LE 64.3
million, an increase of 30.7% y-o-y.
From a comparative standpoint, GB Auto’s position in
the Iraqi market is better than most in terms of bank debt,
stocks, and foreign currency. As is the case with many
other businesses in the troubled country, there is limited
visibility on future conditions. GB Auto intends to main-
tain its operations and management is exploring a number
of contingency plans that should allow the company to
tackle whatever challenges that may arise.
Algeria
GB Auto’s operations in Algeria were hampered by a
difficult economic and regulatory climate during 2015.
In addition to a generally sluggish economic backdrop,
Algeria also found itself grappling with a foreign cur-
rency shortage and restrictions on car imports, which the
government temporarily suspended until new legislation
is put in place. The focus of 2015 was on liquidating the
company’s Algerian stock, leaving only 250 units by year-
end, which management intends to sell during the first
half of the coming year.
Despite these challenges, management remains optimistic
about the recovery of this potentially lucrative market and
will continue to pursue additional opportunities for long-
term growth in Algeria.
Libya
Given the increasingly volatile conditions on the ground in
Libya, GB Auto began liquidating its inventory in the coun-
try as it arranged to exit the turbulent market. It is worth
nothing that GB Auto has no personnel in Libya and all
inventory in the country remains fully insured.
GB Auto Sales Volume Across
All Brands and Markets
(Vehicle Units)
CBU CKD
34,869
44,562
50,103
51,924
22,439
17,749
21,598
28,764
39,135
27,718
38,316
44,645
2010 2011 2012 2013
2015
2014
Revenues by Year
(LE million)
5,741.9
6,072.3
6,536.9
7,489.9
8,909.9
5,383.0
2010 2011 2012 2013
2015
2014
Segmentation of the Egyptian
Passenger Car Market
(Units sold and % Market Share as of Year-End 2015)
22,296
1,070.0
22,695
7,128
14,736
43,350
Hyundai Nissan Chevrolet Kia Geely
Emgrand
22.2%
11.4% 11.6%
7.5% 3.6%
21 | GB Auto |
2015