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PAL is GB Auto’s newly launched Lubricants business. It
distributes Gazprom Neft-Lubricants at GB Auto-branded
and third-party points of presence in the Egyptian market
under an exclusive strategic alliancewithGazpromNeft. The
company had announced in January 2014 that it has entered
into an exclusive strategic alliance to distribute Gazpromneft
Lubricants, giving GB Auto access to a 400-450 tons per year
market that grows at an annual pace of 2-3%. The company
will aim to take the partnership to other regional markets,
possibly incorporating other lines of business fromGazprom-
neft’s downstreamportfolio, following a successful rollout in
Egypt at bothGBAuto-branded and third-party points of sale.
GB Auto’s Retail arm operates retail After-Sales outlets to
distribute tires, tire parts, batteries, parts and lubricants.
These points of presence also offer services including tire
installation and balancing, battery services, and the sale
and injection of lubricants in select locations. Operations
are expected to launch in 2Q16.
The company’s western-style pre-owned car operation, Fab-
rika, is now operational at all GB-owned points of presence
in Egypt, with operations having started in 2014 and the
market proving receptive. Management anticipates further
announcements regarding product representations within
GB Auto-branded service centers and third-party points of
sale in the near future.
2015 Business Review
PAL operations showed substantial and promising growth
in 2015, as revenues jumped to LE 33.9 million from to LE
2 million during the previous year. The division’s sales and
profits were in line with management’s expectations and
GB Auto anticipates further announcements regarding new
product representations within company-branded service
centers and third-party points of sale in the near future.
Fabrika also posted solid figures for FY15 as it continued
to steadily grow its sales and expand its range of products.
GB Auto’s pre-owned vehicles operation closed the year
with LE 42.0 million in sales revenues, compared to LE 22.0
million the year before.
The division’s gross profit margin also increased, coming
in at 20.9%, showing an improvement of 14.4 percentage
points over FY14.
GB Auto’s Retail arm is in the process of rolling out new
After-Sales retail outlets called ‘360,’ which will distribute
tires, tire parts, batteries, parts, and lubricants. These points
of presence will also offer services, including tire installa-
tion and balancing, battery services, and the sale and injec-
tion of lubricants in select locations.
Overall, new divisions contributed positively to the
group’s gross profits in 2015 and are set to deliver solid
results and further contributions from 2016 onwards.
30 | GB Auto |
2015
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