Diversified trading group Car & General more than tripled its net profit to Sh887.2 million for the year ended 30 September 2021 compared to Sh274.1milion in the same period last year.
The firm which deals in a range of power generation, engineering, and automotive products also grew its revenue 41.4 percent to Sh17.1billion from Sh12.1billion.
The firm’s CEO Vijay Gidoomal said in a statement said 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.,” a statement issued read in part.
Earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 100pc to Shs 1.8 billion from Shs 936 million.
“Profitability was significantly impacted by demurrage losses of Shs 103 million resulting from global logistical issues and localization of production. Our cash flow was negatively impacted by supply chain issues, resulting in higher levels of paid-up stock to the tune of Shs 1.4bn,” Vijay said.
The good performance saw the firm quadrupling its dividend payout to Sh3.2 per share and also proposed a one-for-one bonus share.
The company had paid a dividend of Sh0.8 per share for the prior year. The new proposed distribution will be made on March 24 to shareholders on record as of February 25.Overall, sales in Kenya grew 55 percent and sales outside Kenya grew 22 percent.
Uganda and Tanzania now represent over 35 percent of Group sales. Our two-wheeler and three-wheeler businesses experienced reasonable growth.
“Our equipment businesses (namely tractors, construction equipment and forklifts) also grew particularly Doosan,” the firm added.