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In4Q16, GBAuto increased its share inGBPolo, its JVwithglobal
giant Marcopolo, to 80% from 51%, which should boost profit-
ability as the company takes full control of the venture and
bolsters its performance, witha focus onexport potentials.
The Commercial Vehicles & Construction Equipment busi-
ness unit is supported by financing through GB Lease as well
as a robust after-sales framework that extendsGBAuto’s total
care model to customers of this key line of business. This
business unit offers GB Auto customers throughout Egypt a
nationwide network of owned-retail showrooms, including
14 after-sales service centers.
2016 Business Review
GB Auto’s Commercial Vehicles & Construction Equipment
line of business saw overall sales volume drop 15.6% y-o-y
in FY16. Revenues also fell, dropping 8.5% y-o-y to LE 1,113.3
million for the full year, while gross profit gained 20.0% y-o-
y to LE 201.3 million throughout the year, with a gross profit
margin of 18.1%, 4.3 percentage points higher than last year.
Trucks were the top contributors to the segment’s profit-
ability during the year, with a 28.0% y-o-y increase in sales
revenues, which climbed to LE 504.7 million during the year
thanks to a 10.0% y-o-y boost in sales volumes driven by a
renewed appetite for construction activity in Egypt.
Buses came closely behind despite a drop in volumes and
revenues in FY16. GB Auto is expected to deliver 90 coaches
for intercity usage worth LE 200 million in 1Q17. The fourth
quarter saw the delivery of 10 Viaggio 1050 buses from GB
Polo on Volvo B9R bus chassis, which is expected to see GB
Auto occupy a leadership position in the city and intercity
segments, overtaking Super Jet.
GB Auto also penetrated the tourism segment after deliver-
ing coaches for companies TEZ and Carols, helping to boost
the segment’s performance going forward as tourism begins
to show signs of recovery.
Trailer revenues slowed down in FY16 as sales volumes de-
creased 54.5% y-oy. Management, however, expects improve-
ments on this front, especially after the introduction of the
new silos and tanks product lines. It also expects the overall
division to continue on its path of gradual growth, supported
by investments in infrastructure development inEgypt.
Bus Sales Volume by Year
(Vehicle Units)
482
470
495
1,172
735
1,055
927
2011
2010
2012 2013 2014
2016
2015
Truck Sales Volume by Year
(Vehicle Units)
542 1,063 1,090
1,415 1,556
2,292
1,297
2011
2010
2012 2013 2014
2016
2015
CV&CE Total Revenues by Year
(LE million)
286.8 410.2 421.3
1,216.9 1,113.3
801.6
586.6
2011
2010
2012 2013 2014
2016
2015
2016 ANNUAL REPORT
33