GB Corp., led by Egypt’s Ghabbour family, reports $58 million profit in 2024

Key Points

• GB Corp.’s net profit surged 55% to $58 million in 2024, fueled by strong automotive sales, strategic pricing, and financial services expansion.
• Automotive revenues nearly doubled to $960 million, led by passenger car sales growth of 120.8% and a diversified product mix mitigating Egypt’s forex challenges.
• CEO Nader Ghabbour plans regional expansion, digitalization, and automation as economic pressures ease and consumer purchasing power improves.

GB Corp., the Cairo-based automaker owned by the family of late Egyptian auto tycoon Raouf Ghabbour, has posted one of its best financial performances with net profits exceeding $55 million during its 2024 fiscal year. This was driven by robust growth in both its automotive and financial services arms, underscoring its key role in Egypt’s automotive sector.

According to the consolidated financial results, GB Corp.’s net profit surged by 55.03 percent, climbing from EGP 1.89 billion ($37.36 million) in the full year of its 2024 fiscal year (FY 2024) to EGP2.93 billion ($57.85 million) in the corresponding period of 2023 (FY 2023), firmly establishing itself among Egypt’s profitable businesses.

The company also reported a 90.6 percent increase in total revenue, reaching EGP 53.97 billion ($1.06 billion), compared to EGP 28.3 billion ($558.66 million) in the previous year. This was fueled by strategic pricing adjustments and an expanded product portfolio.

Automotive segment leads revenue growth

GB Auto, the group’s flagship automotive division, played a pivotal role in driving revenue growth. The segment reported a near doubling of revenues to EGP 47.1 billion ($960 million) in 2024, benefiting from strategic pricing adjustments and a more diversified product mix.

Passenger car sales rose 120.8 percent year-over-year, with a 55.7 percent increase in volumes, as the company leveraged a shift to CKD models to counteract Egypt’s foreign exchange challenges. Additionally, its trading business, encompassing spare parts and tires, posted a 52.2 percent year-over-year revenue increase, fueled by strong market demand.

Despite a 7.8 percent drop in commercial vehicle and construction equipment volumes, revenue in that segment still rose 71.5 percent year-over-year. Meanwhile, the company’s light mobility segment, which includes two- and three-wheelers, saw revenue expand by 61.3 percent year-over-year as the phase-out of three-wheelers no longer impacted performance.

CEO outlines growth strategy

CEO Nader Ghabbour remains confident in GB Corp.’s ability to capitalize on macroeconomic tailwinds, citing an expected stabilization in foreign exchange and inflation rates, easing import restrictions, and recovering consumer purchasing power.

“We will deepen our regional presence by introducing new brands, boosting automation, and further digitalizing our operations to strengthen efficiency and synergies across all lines of business,” Ghabbour stated.

Ghabbour family cements leadership in Egypt’s auto industry

Founded in 1985 by the late Raouf Ghabbour, GB Auto has grown into one of the Middle East and Africa’s leading automotive companies. Today, the Ghabbour family holds a 62.9% stake in GB Corp., solidifying their status as some of the wealthiest investors on the Egyptian Exchange.

With its strategic expansion plans and strong financial footing, GB Corp. is well-positioned to maintain its leadership in Egypt’s automotive and financial services sectors, shaping the industry’s future for years to come.