This archive report was first published on 22 May 2020.
On 31st March 2020, Car & General, a listed auto dealer, reported a significant increase in net earnings to KSh 164.8 million for the six months ended. This marks a substantial improvement from the KSh 51.3 million recorded in the previous half-year period.
According to the firm's interim unaudited half-year results, the growth in earnings can be attributed to strong sales of two and three-wheelers in Kenya and Tanzania. Despite the disruptions caused by the COVID-19 pandemic, the company's Tanzanian business has recorded significant growth in turnover and profit levels.
However, the firm's poultry business in Tanzania has faced challenges due to low prices of day-old chicks, resulting in excess supply. The company's investment in property has also seen the completion of refurbishment works at Nairobi Mega, formerly Nakumatt Mega, which has secured Carrefour supermarkets as its anchor tenant.
“Given the onset of COVID-19 pandemic, the next six months look extremely difficult across all business sectors. We expect volumes to decline significantly with an adverse impact on profitability,” said Vijay Gidoomal, Car & General CEO.
Directors of the firm have not declared any interim dividend as the automaker prepares for difficult periods ahead. The company's balance sheet size increased to KSh 11.8 billion from KSh 10.6 billion during the period under review, while shareholders' wealth increased from KSh 3.4 billion to KSh 3.8 billion.
