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GB Auto has been among Egypt’s
leading tire distributors for over 50
years. The company distributes pas-
senger car, van, bus, construction
equipment, light-truck, truck, and
bus-truck tires from manufactur-
ers including Turkey’s Lassa, Japan’s
Yokohama,China’sWestlake, Triangle,
Double Coin.
Despite difficulties faced throughout
the year due the foreign currency
crunch and subsequent f loatation of
the local currency, the Tires business
unit is an increasingly important
contributor to GB Auto’s revenue and
profitability stream, through both
increased sales volume and sustained
foreign currency sales in an environ-
ment of devaluation in the company’s
homemarket of Egypt.
In line with its plans to expand the
business, GB Auto continued to add
brand representations to its portfolio
during 3Q16, including its own inhouse
brandVerde, whichhas so far delivered
promising sales figures.
2016 Business Review
The Tires division continued to outpe
form at both the top- and bottom-lin
levels in FY16, posting revenues of LE
462.5 million compared to LE 203.2
million last year, up 127.6%. Gross profit
came in 267.9% higher y-o-y at LE 101.3
million compared to LE 27.5million last
year. The gross profit margin stood at
21.9% compared to 13.6% in FY15.
During the year, GB Auto performed
positively in the Egyptian Agro tire
market with its own brand Verde.
Egypt Tires
3.0
%
GB Auto enjoys a strong leadership position in the
Egyptian tire market thanks to its quality tire partners
including Lassa (Bridgestone Sabanci Group), Yokohama,
Westlake (ZC Rubber), Double Coin and Verde (GB Auto
own brand) and its widespread distribution network.
Tires Revenues by Year
(LE million)
163.4 277.8 336.9
203.2 462.5
315.5
111.7
2011
2010
2012 2013 2014
2016
2015
2016 ANNUAL REPORT
34
Our Business Units