This archive report was first published on 6 January 2022.
Published on January 6, 2022, Car&General, a leading diversified trading group, has announced a remarkable increase in its net profit, more than tripling to Sh887.2 million for the year ended September 30, 2021, compared to Sh274.1 million in the same period last year.
The company, which operates in various sectors including power generation, engineering, and automotive products, has also seen a significant growth in its revenue, increasing by 41.4 percent to Sh17.1 billion from Sh12.1 billion.
According to Vijay Gidoomal, the CEO of Car&General, the business performed well across the board, with rising demand for its brands of motorcycles and tuk-tuks, while its lending arm, Watu Credit, also registered significant growth.
"The highlight of the financial year was the volume in our consumer businesses, particularly in two-wheelers and three-wheelers in both Kenya and Tanzania. Our equipment business also stabilized," Gidoomal stated.
Notably, earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 100 percent to Sh1.8 billion from Sh936 million.
However, the company's profitability was impacted by demurrage losses of Sh103 million resulting from global logistical issues and localization of production, while its cash flow was negatively affected by supply chain issues, resulting in higher levels of paid-up stock to the tune of Sh1.4 billion.
Despite these challenges, the company's good performance has led to a quadrupling of its dividend payout to Sh3.2 per share and a proposed one-for-one bonus share.
The new proposed distribution will be made on March 24 to shareholders on record as of February 25.
