Car and general profit grows 50 per cent to Sh274 million

Car and General (C&G) has reported a 50 per cent rise in profit for its financial year ending September 2020, helped by growth in revenues across East Africa and huge tax credits.

The firm said its profit went up to Sh274 million in the year compared to Sh182 million made over a similar period in 2019. C&G, in an update to shareholders, said it had suffered the impact of Covid-19 with sales in Kenya declining 2.5 per cent, but growing by 8.7 per cent in neighbouring states.

Foreign exchange loss also cut its earnings. “Profitability was impacted by forex losses of Sh82 million resulting from the depreciation of the Shilling. Our results would have been better,” said the firm.

The firm’s investment in the property sector experienced a valuation loss of Sh52 million as prices in the real estate sector tumbled.

“We continue to review the property portfolio to ensure it generates satisfactory returns,” said Car and General.

It expects uncertainty to persist in 2021 but said it is looking at higher efficiency levels

The firm has a diversified product offering with four distinct business lines being automotive and equipment distribution, real estate investment, financial services and poultry.

Its board has recommended a final dividend of 80 cents per share, which will result to a total dividend pay-out of Sh32 million. Shareholders are expected to approve the dividend at an annual general meeting on February 22.