Egypt’s GB Auto 2nd-qtr profit falls on soft markets, currency

CAIRO (Reuters) – Egyptian auto distributor GB Auto’s second-quarter net profit before minority interests dropped 65 percent from the same period last year due to a shortage of foreign currency and a particularly soft market in Iraq, the company said on Monday.

Second-quarter net profit before minority interests was 22.4 million Egyptian pounds ($2.86 million) from 63.6 million in the same quarter last year.

The foreign currency shortage in Egypt depleted inventory of some of its key models, the company said, adding that a decline in demand in Egypt early in the second quarter had also had an impact.

However, net profit after minority interests rose 26 percent to 50.3 million Egyptian pounds ($6.42 million) from 39.9 million pounds a year ago.

“Despite continued currency challenges and difficult operating environments in our expansion markets, we managed to grow sales across most of our LOBs (lines of business) in our home market of Egypt,” GB Auto Chief Executive Raouf Ghabbour said in a statement.

GB Auto is the Egyptian distributor of tuk-tuks and motorbikes made by India’s Bajaj.

($1 = 7.8300 Egyptian pounds)

• foreign currency