Car & General Half-Year Net Profit Rise 36% to KShs.629M
Car & General (Kenya) Limited Plc Net Profit for the first six months of the financial year ended March 2022 reached KSh 629 million from KSh 461 million in H1, 2021, an increase of 36%.
According to Nicholas Ng’ang’a, the listed auto dealer’s Board Chairman, financial performance improved due to higher sales in all the group’s businesses across East Africa. This is in spite of a challenging trading environment given global supply chain constraints which have led to significant price increases in all products and longer lead times from various destinations.
The net result has been reduced margins and higher stock holdings. This has been exacerbated by a gradual devaluation of the Kenya shilling which also resulted in forex losses. From a balance sheet perspective, this has meant higher investments to fund continuous growth
“We expect these conditions to persist for the remainder of this financial year,” said Ng’ang’a.
The Group’s unaudited results for the half year ended 31st March 2022 was KSh 10 billion representing a 23% increase over the same period last year.
According to Ng’ang’a, Car& General trading operations, particularly in Kenya and Tanzania, have seen good growth in turnover but at reduced margins. The Poultry operation in Tanzania has also traded profitably due to stability in pricing and demand.
The Group’s Investment Property, Nairobi Mega along Nairobi’s Uhuru Highway has seen higher footfalls due to fewer Covid restrictions and the near completion of the Nairobi Expressway.
Car & General Directors’ Future Outlook
In its future outlook, the Group said that given the logistic challenges and upcoming August polls, the next six months look unpredictable across all business sectors.
“There are additional challenges in the form of fuel shortages, forex devaluations, inflation and increasing interest rates. Our focus will be growth in market share, cost control, preserving cash, protecting margins and increasing working capital efficiencies,” said Ng’ang’a.
Directors of Car & General do not recommend an interim dividend.