Auto Ali Alghanim Automotive Sons… Profits and distributions exceed expectations

Ali Alghanim Automotive Sons… Profits and distributions exceed expectations

– Fahd Al-Ghanim: We have ambitious visions and our distinguished relationships with suppliers for 40 years are reflected in our performance
– The company has become a real destination to meet the requirements of its customers in Kuwait and other markets
The 2022 dividends exceed what we promised investors and shareholders before the listing by 21.43 percent.
– The company’s financial position is solid and its assets have grown according to fair assessments of its operating assets
We reopened the BMW factory in Egypt to produce the first “Egyptian-made” car.
– 3 production lines in Egypt with a total capacity of 10,000 cars annually
– We care a lot about the Iraqi market… We have achieved a 34 percent growth in it
– We work closely with international companies to bring the best models
– Youssef Al-Qatami: Today, the company is a huge conglomerate and a business that is synonymous with success and excellence
– Our strategy is concerned with expanding our presence in the economical car sector
– We are working to launch additional Express Service Centers and enhance the online experience

The Chairman of the Board of Directors of Ali Al-Ghanim Sons Automotive Company, Fahd Ali Al-Ghanim, renewed his confidence in the company’s performance and its financial ability to continue expanding locally and regionally, in a way that guarantees it achieving returns and meets the aspirations of all shareholders.

This came during the company’s general assembly, which was held yesterday, and approved the dividend distribution to shareholders for the past fiscal year at 57.78 fils in cash per share, according to the approved eligibility criteria. Current fiscal year (2023).

Al-Ghanim pointed out that “Ali Al-Ghanim Sons Automotive” achieved a growth in its profits for the past year by 27.46 percent, reaching 18.704 million dinars as on December 31, 2022, compared to a net profit of 14.675 million as on December 31, 2021, explaining that these profits carry an increase of more than What the company promised during the last period, which reflects the strength of the company’s position, which has become a real destination that meets the requirements of its customers in Kuwait and many other markets.

Al-Ghanim continued, “The recommendation of the Board of Directors to the General Assembly to distribute cash dividends to shareholders for the six months ending on December 31, 2022, at a rate of 34 percent of the nominal value of the share, or 34 fils per share, means that the company’s cash dividends amounted to 57.78 fils per share for the year 2022. This exceeds the percentage promised to investors and shareholders before listing, which was 47.58 fils per share, a growth rate of 21.43 percent.

Al-Ghanim pointed out the importance of continuing to support more achievements achieved or included in the strategic plan approved by the Board of Directors and the general public of the company, stressing that «the financial performance is excellent, and the company’s position is solid, and the growth of the assets achieved came according to fair assessments and a realistic reading of what falls under its umbrella. assets and operating assets.

He added, “We work according to ambitious visions, and our relations with suppliers are strategic and close to 40 years, and we will continue to invest in those good relations and the trust of suppliers in us in a way that will be reflected in the company and its performance in the market.”

Egyptian market

Regarding the company’s expansions, Al-Ghanim stated that Ali Al-Ghanim Sons Automotive is interested in the Egyptian market, expecting that the company’s expansion in that market will have a good impact on its future performance.

And he indicated that despite the economic and geopolitical challenges that the world is going through, the company was able to overcome them and achieve many of the achievements that it aspired to, noting that «the most prominent of these achievements was a new regional achievement by entering the Egyptian market during the year 2022 through the Global Auto Company for cars. , one of the associate companies of (Ali Alghanim Sons Automotive), which owns the official supply right for the BMW and Mini brands in Egypt.

Al-Ghanem referred to the reopening of the “BMW” car factory in Egypt, with the first “BMW” car exiting the production lines after a period of hiatus, explaining that the factory includes 3 production lines with a total capacity of 10,000 cars annually, and the latest showrooms were opened. BMW and MINI in Obour City, Egypt.

He added, “The company is also interested in the Iraqi market, as it has achieved a growth rate of 34 percent.”

future goals

Al-Ghanim reviewed the future goals of the company, explaining that they are represented in the following:

1 – Working closely with international companies to bring in the best models, as he confirmed the company’s continuity in strengthening its long-term relations with international companies to provide greater levels of inventory of models with high demand, noting that coordination with international companies became more important after the Corona pandemic, as it led to challenges Global supply chains restrict production in most companies in the industrial sectors.

He explained that due to the company’s strong relationship with international companies, “Ali Alghanim Sons Automotive” was able to reduce the negative impact by ordering more vehicles with higher profit margins from among the group of vehicles allocated to the company.

2 – Supporting the growth of the low-income segment, as Al-Ghanim stated that the company has great ambitions represented in increasing growth in the segment of low-income customers, indicating that it has brought two fast-growing brands, namely “Great Wall Motors – Haval” and “Geely”, noting that The brand growth rate for Geely and Great Wall Motors – Haval represents 58 and 26 percent, respectively, compared to 2021.

He attributed this to the continuous improvement in Chinese technology, customer acceptance and change in customer preferences.

Strong results

For his part, CEO of Ali Al-Ghanim Sons Automotive Company, Youssef Al-Qatami, said in his speech on the annual report, “The strong results achieved by the company in 2022 are a reflection of what the company is today as a huge conglomerate and work synonymous with success and excellence,” pointing out that the diverse portfolio of cars at The company consists of passenger vehicles, commercial vehicles, heavy commercial vehicles and equipment, in addition to after-sales products and services.

Al-Qatami explained that through the seven companies that fall under the umbrella of “Ali Alghanim Sons Automotive” and its subsidiaries, the company represents the best luxury car brands in the world, as it is the official importer and distributor of “BMW”, “Mini” and “Rolls-Royce” cars. Land Rover, McLaren, Great Wall Motors (Haval), Geely and MAN trucks and buses in Kuwait, and BMW Mini in Iraq and Egypt.

He added that the company’s regional expansion proved successful and that it continues to progress and expand, pointing to the company’s strong and growing presence in the Egyptian and Iraqi markets, stressing that the company’s operations in Iraq provide great growth prospects with the continued stability of the market.

Continuous improvement

Al-Qatami pointed out that the growth strategy of Ali Al-Ghanim Sons Automotive Company focuses on expanding its presence in the economical car sector through “Great Wall Motors” (Haval) and “Geely”, expecting that the demand for fast-growing brands in Kuwait will be in line with the demand it is witnessing in The global market, due to the continuous improvement in affordable technology and customer approval, and the change in customer preferences.

He explained that the company is also working to increase its share in the luxury car market by offering a wider mix of models that includes the lowest-priced models, indicating that, in line with this strategy, the company seeks to expand its presence in new and attractive markets in the Middle East and North Africa region, and benefit from the success of its expansion. the latter in Egypt and Iraq, the company also intends to explore new opportunities in other related sectors to provide a comprehensive service to customers.

He stated that the company is working to launch additional express service centers and enhance the online experience through retail, virtual showrooms and interconnected services as part of its strong focus in digitization.

Authorizing the Board of Directors to distribute quarterly profits

Al-Ghanim revealed, in the context of his statements on the sidelines of the General Assembly, that the shareholders agreed to authorize the Board of Directors to distribute dividends on a quarterly or semi-annual basis, according to what the Board deems appropriate, provided that the distribution is real profits in accordance with generally accepted accounting principles, and without prejudice to the paid-up capital of the company.

successful listing

Ali Alghanim Sons Automotive Company became the first family car dealership company to be successfully listed in the Gulf markets, as it was officially listed and its shares traded on the Kuwait Stock Exchange as of June 7, 2022.

In 2022, the company achieved exceptional financial results that reflect the efficiency of its operational operations, its well-established strategy, and the strength of its financial position.

Local expansions

Al-Ghanim said, “As part of its local expansion plans, the company strengthened the presence of the (BMW) brand in Kuwait by opening its third showroom in Jahra Governorate, which includes an upscale showroom, a modern service center, and a spare parts center. The company also launched a showroom New cars for (Gely) cars in Jahra Governorate, containing a modern service center and a center for spare parts.

He noted the opening of a new express service center in the Mansouriya area, bringing the number of these centers to 13 centers at the present time, adding, “We are also close to completing the construction work to launch the fourteenth center in the Abdullah Al-Mubarak area.”

27.01 percent growth in assets to 188.078 million dinars

The total assets of “Ali Alghanim Sons Automotive” increased by about 27.01 percent during 2022, with a total value of 188.078 million dinars as on December 31, 2022 compared to 148.085 million as on December 31, 2021, while the total equity of the shareholders of the parent company increased by 27.24. percent, with a total value of 72.963 million at the end of last year, compared to 57.341 million as of December 31, 2021.

Thanks and appreciation

Al-Ghanim thanked the members of the Board of Directors, members of the executive management, and all employees of Ali Al-Ghanim Sons Automotive Company for their valuable contributions in implementing its strategy during the year 2022, stressing that their sincere efforts contributed to achieving the company’s goals. He also thanked the company’s shareholders for their support for its journey as a leading company locally and regionally in automotive sector.

He said, “We are pleased to express our pride in this success, which is a starting point for a promising path of achievements that serve shareholders and all stakeholders in the communities in which we operate.”

Leave a Reply

Your email address will not be published. Required fields are marked *