16 / 113
Volvo city buses to the Cairo and Alex-
andria authorities.
3. GB Auto launches first
branch of 360
GB Auto launched its first ‘360’ store in
Cairo’s Mohandessin district. The outlet
offers a diverse range of light passenger
car services and guarantees customers a
unique experience at competitiveprices.
4. GB Auto establishes 3S,
Marghem service facilities in
Alexandria
In March 2016, GB Auto established its
latest 3S facility in Amareya, Alexan-
dria to service its passenger cars and
commercial vehicle brands. Within a
single month of operations, the branch
reported a 50% capacity utilization
rate. It also launched theMarghamcen-
ter in Alexandria, including a 1,150 sqm
showroom for Hyundai vehicles and a
5,000 sqm workshop that can accom-
modate up to 120 vehicles a day.
Outlook
GB Auto continues to believe in the
strong fundamentals of the Egyptian
economy. The f loat of the Egyptian
pound in 2016 has undoubtedly had
short-term downsides for the market,
but signs are emerging that the automo-
tive industry is on the road to recovery.
The value of the Egyptian pound is just
one of the issues GB Auto will be assess-
ing on a regular basis as we expect the
exchange rate to continue to be volatile
into 2018. The unpredictability is not
only set to cause profitability to vary,
but have a marked impact on consumer
spending, particularly in the current
highly inflationary environment. We
plan to bring inventory back down to
historical days-on-hand.
We also expect the diversity of our
product portfolio will play in our favor,
with our Commercial Vehicles & Con-
struction Equipment, After-Sales, and
Financing Business lines delivering
2016 Financial
Highlights**
Group Gross Profit
Margin
Group EBIT
Group Net Profit*
Group Net Profit Margin*
Passenger Car Revenue
Motorcycles and Three-
Wheelers Revenue
After-Sales Revenues
Financing Revenues
15.3
BN
2.2
BN
14.4
%
866
MN
345.9
MN
2.2
%
8.0
BN
1.7
BN
826
MN
1.7
BN
Group Revenues
Group Gross Profit
* Factoring out FX losses of LE 1.1 billion.
** All figures provided above are net after elimination of inter-company accounts
2016 ANNUAL REPORT
14
Management Review and Financial Performance