Q3 2025 GB Auto SAE Earnings Call Transcript
Key Points
- GB Corp (CAI:GBCO) reported a 33.6% year-on-year increase in consolidated revenue, reaching EGP21.9 billion.
- The Auto segment saw a 25.1% year-on-year revenue growth, supported by stable supply levels and improving market conditions in Egypt.
- GB Auto maintained a strong financial position with a net-debt-to-EBITDA ratio of 1.95 times and a net debt to equity ratio of 0.96 times.
- GB Capital's revenue increased by 91.5% year-on-year, driven by improved market conditions and portfolio expansion.
- The company achieved a significant milestone with the Changan SUV CKD model capturing a 2% market share shortly after its launch.
- Net profit margin decreased to 3.5% for the quarter, indicating pressure on profitability despite revenue growth.
- Gross profit margin declined by 3.1 percentage points year-on-year to 14.4%, reflecting normalization after FX stabilization.
- The influx of gray imports in Iraq and Jordan is causing oversupply issues, impacting volumes and margins negatively.
- GB Auto's guidance for the fourth quarter indicates a potential decrease in revenue to approximately EGP18 billion.
- The company has not yet provided clear guidance on dividend expectations or strategic plans for its stake in Highland.
-- This is [Nada Abuzaid from Boltone Holding]. I'd like to welcome you all to GB Corp third-quarter 2025. I'm pleased to have on the line Mr. Nader Ghabbour, who will start with a brief update, and then we'll move on to the Q&A session.
Mr. Nader, please go ahead.
Thank you, Nada. Good afternoon, ladies and gentlemen, and thank you for joining our third-quarter 2025 earnings call. This quarter, GB Corp delivered strong topline growth supported by more stable macroeconomic backdrop and improving consumer demand.
Consolidated revenue reached EGP21.9 billion, up 33.6% year-on-year, while net profit remains stable year-on-year at EGP750.5 million, yielding a quarterly net profit margin of 3.5%. On a year-to-date basis, net profit expanded 35.1% to EGP2.4 billion, reflecting strong operational delivery as supply conditions improve and interest rates ease.
Gross profit grew 10% year-on-year to EGP3.1 billion during the quarter, yielding a margin of 14.4%, which
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