Net earnings of listed auto dealer Car & General increased to KSh 164.8 Million in the six months ended 31st March, 2020. This is compared to KSh 51.3 Million in the previous half-year period.
The firm attributes the performance to strong sales in Kenya and Tanzania of its two and three-wheelers. This is despite disruptions occasioned by COVID-19 pandemic on businesses across the East African region where it has interests.
The firm’s Tanzanian business has recorded significant growth in turnover and profit levels. This is despite slow growth of its poultry business in this country due to low prices of day old chicks which resulted in excess supply.
Car& General investment in property saw completion of refurbishment works at Nairobi Mega, formerly Nakumatt Mega. The 170,000 sq feet property has secured Carrefour supermarkets as its anchor tenant, the retailer expected to set up here in June this year. The development is fully let.
“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.
According to Car & General interim unaudited half year results for the period ended 31st March, 2020, Gross Profit rose to KSh 1 Billion from KSh 763.7 Million.
Revenue increased to KSh 6.3 Billion from KSh 5.9 Billion pushing up Total Comprehensive Income to KSh 163 Million from KSh 51.3 Million in the previous half year period.
The balance sheet size increased to KSh 11.8 Billion from KSh 10.6 Billion during the period under review.
Shareholders wealth in the auto firm increased from KSh 3.4 Billion to KSh 3.8 Billion.