Car & General has declared a total dividend of KSh 32 million, even after a challenging year that ended on 30th September 2020. The company with interests in the automotive sector, real estate, financial services and farming reported a big drop in sales of up to 70% in some of its key markets. Its Kenyan operations reported a 2.5% drop in sales.
“The year to September 2020 proved extremely challenging given the impact of covid19,” said the company in the results announcement.
Even with the reported sales decline in some markets, overall sales outside Kenya increased by 8.7% largely driven by increased demand for two-wheelers and three-wheelers. The group’s revenue increased by 2% to KSh12.1 billion at the end of September 2020 from KSh11.9 billion a year earlier.
Car & General posted KSh274 million net profit at the end of the financial year 2020, 50% above the KSh182 million net profit reported in September 2019. The company said its net profit would have been much higher if it were not for a KSh82 million foreign exchange loss caused by the depreciation of the Kenya shilling.
Car & General’s real estate business recorded a valuation loss of KSh 52 million as the property market suffered from covid19 related challenges. Nonetheless, the firm’s investment in financial services company Watu credit performed relatively and boosted the consumer segment, Car & General says in its financial report.
Although the business outlook is uncertain, Car & General is confident that its highly diversified business will help them cope with the negative impact of the pandemic in 2021. The company will hold its annual general meeting on Thursday, 25th March 2021.
Car and General Half Year earnings rise to KSh 164.8 Million
