Car & General’s net profit for the six months that ended on 31st March 2021 jumped by 180% boosted by the high demand for two-wheelers and three-wheelers in Kenya and Tanzania. The company’s net profit climbed to KSh460.6 million at the end of 31st March 2021, from KSh164.8 million in March 2020.
Car & General operates in the automotive sector, real estate industry, financial services, and agribusiness sector.
Thanks to a rise in the demand for generators, forklifts, tractors, and motorcycles, the company’s revenue advanced by 28% to KSh8.2 billion from KSh6.3 billion reported in the corresponding period in 2020. The company reported improved sales in Kenya, Tanzania and Uganda.
Car & General’s operating and administrative expenses increased to KSh744 million in the six months through March 2021, from KSh644.7 million at the end of March 2020 due to increased demand for the company’s products.
In the near term, the NSE listed firm expects reduced rental income from its Nairobi Mega property situated along Uhuru highway due to the ongoing construction and covid19 restrictions which have adversely affected the investment property.
Car & General’s investment in Watu Credit limited is well on track. The company recently invested in a helmet manufacturing facility which is expected to bring in profit in the coming financial year.
The company said that the next six months of the year remain unpredictable but it is focusing on increasing its market share, preserving cash, and improving working capital efficiencies.
Car & General’s directors did not recommend a dividend payment for the period that ended on 31st March 2021.
Related : Car & General Declares KSh 32 Million Dividend Payout
