Car&General, a vehicle dealer listed at the Nairobi Securities Exchange(NSE) made a Net Profit of KSh 887 million which is over 300% higher than KSh 274 million made during the same period in 2020.
The Group posted 42% growth in turnover. Overall, sales in Kenya grew 55% and sales outside Kenya grew 22%. Uganda and Tanzania now represent over 35% of Group sales.
Car&General recorded significant growth in two wheeler and three wheeler business
Its two-wheeler (“boda boda”) and three-wheeler (“tuk tuk”) businesses experienced reasonable growth. Our equipment businesses (namely tractors, construction equipment and forklifts) also grew particularly Doosan.
As a result, turnover for the year ended 30 September 2021 was KSh 17.1 billion against KSh 12.1 billion achieved the previous financial year.
EBITDA (Earnings before interest, tax, depreciation and amortization) grew by 100% to KSh 1.8 billion from KSh 936 million in 2020
Profitability of Car&General was significantly impacted by demurrage losses of KSh 103 million resulting from global logistical issues and localization of production.
“Our cashflow was negatively impacted by supply chain issues, resulting in higher levels of paid-up stock to the tune of KSh 1.4billion,” said the firm in a statement.
The car dealer’s consumer businesses particularly in two wheelers and three wheelers in both Kenya and Tanzania as well as the equipment business also stabilized.
Given the positive performance this year, the Directors of Car&General recommend a dividend of KSh 128,330,586 (KSh 3.20 per share) in respect of the year compared to KSh 32,082,646.00 or KSh 0.80 per share in 2020), payable to those registered at the close of business on Friday, 25 February 2022.
Subject to approval by shareholders, the dividend will be paid on or about 24 March 2022.
The Directors of Car&General further recommend the issuance of Bonus Shares of one (1) new fully paid-up bonus share of a par value of KSh 5/- for every one (1) ordinary shares of par value of KSh 5/- to be issued to the shareholders registered on the Company’s register at the close of business on 24th March, 2022.
The Bonus is subject to approval from Capital Markets Authority(CMA) and shareholders at the AGM to be held on March 24th, 2022. Shareholders will be credited with the Bonus Shares on Friday, 8th April 2022. The Bonus shares will not be entitled to receive any dividend declared and approved for the year.
The register of members will be closed on Friday 25th February 2022 for purpose of the preparation of a dividend list. The register will also be closed on 24th March 2022 for purposes of processing the Bonus Shares.
Car&General has also issued a notice that the next AGM will be held in a hybrid format at New Cargen House, Industrial Area on 24th March 2022 at 10.00 am
Car& General nows offer a complete range of specialized engine related products (both consumer and equipment) through a solid distribution network.
“Our investment in Watu Credit is also performing well and driving growth in the consumer segment. In addition to Kenya, Watu has now established operations in Uganda,
Tanzania and Sierra Leone. The contribution from Watu to the Group’s net profit was significant,” said the firm in a commentary.
Car&General investment property business saw a valuation gain of KSh 12 million in 2021 given challenging market conditions.
Due to declining footfall resulting from Covid and the development of the Nairobi Expressway, Car& General has supported its tenants at Nairobi Mega, on Uhuru Highway through concessions on rent. It continues to review the property portfolio to ensure it generates satisfactory returns.
In order to support the Government’s localization initiatives and create industrial employment, during the year, Car&General opened Boda Plus, its helmet manufacturing business.
Production commenced in September 2021.
This is the first of its kind in East and Central Africa. In addition, Car& General has worked with manufacturers to produce six parts locally to support its assembly process. The firm now employs over 3000 people as a Group (including associates) and employed over 1000 additional people in 2021.
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