Car and General’s (C&G) pre-tax profit fell 44 per cent during the six months period ended March 31.
The Group’s, profit before tax (PBT) dropped to Sh106.2 million from Sh190.7 million in a similar period last year.
The fall in margins was attributable to a steep devaluation of the shilling against all major foreign currencies, which resulted in significant importation costs.
C&G, which distributes Suzuki motorbikes and also services motorboat engines and motorcycles, suffered high operating costs brought about by company’s attempt to consolidate its market position. The Group is looking for diversification opportunities away from the traditional regional markets, and has recently made a property investment to supplement the existing property portfolio.
According to the Group’s unaudited financial statements, turnover rose 22 per cent to Sh2.7 billion from Sh2.2 billion in a similar period last year.
The company’s directors are optimistic of an improved full-year performance buoyed by increased selling prices, reduced costs and diversification initiatives.
“Barring unforeseen circumstances our results for the year are not expected to be significantly different from last year,” the company said in a statement on Tuesday.
Established in Nakuru slightly over 72 years ago, it has extended its branch network beyond Kenyainto Uganda, Tanzania, Ethiopia, Eritrea, Djibouti and Seychelles.
The automotive and engineering products firm has the sole rights to distribute TVs and Suzuki motorcycles and Piaggio three wheelers (tuk tuk) in Eastern Africa, among other products.