Car & General reported a net loss of Sh37 million for the period, against a net profit of Sh41.8 million in a similar period a year ago.
Listed automotive and engineering products seller Car & General (C&G) #ticker:C&G sunk into losses in the first half ended March 31 weighed down by forex losses, rate caps and weak regional sales.
The firm reported a net loss of Sh37 million for the period, against a net profit of Sh41.8 million in a similar period a year ago.
“Due to devaluation across the region there was an adverse forex movement of Sh83 million,” said the firm in a statement.
Its turnover for the six month period stood at Sh5.2 billion, an eight per cent rise above last year. “In Kenya volumes in our consumer business (two and three wheelers) made good progress. However, due to general risk aversion and the restriction on bank financing resulting from the interest rate cap volumes in our equipment business, generators, construction equipment, tractors and forklifts declined,” said the firm.
“In Tanzania the economy is extremely challenging given the current government reforms,” it added.
The firm supplies generators, motorbikes, laundry equipment, lawn mowers, scooters, marine engines, construction equipment and a range of automotive and engineering products in East Africa.
The listed firm, which is mulling over real estate investment, is the first to report the impact of interest rate controls which has hit lending to the private sector hard.
