Proposed dividend distribution of 34 fils in cash for second half of 2022, amounting to 57.78 fils for the whole year
· Fahad Al-Ghanim: Cash profits distributed in 2022 exceed the company's promise to shareholders by an outstanding 21.43%
· The Board of Directors proposed a minimum dividend of 58 fils per share for 2023
· The company has successfully overcome various challenges and achieved several significant milestones
· The company has entered the Egyptian market and reopened the "BMW" factory in Al Obour
· The company launched showrooms for "BMW" and "Geely" cars in Al Jahra.
Kuwait City- X March 2023: "Ali Alghanim Sons Automotive Company K.S.C.P." Chairman, Mr. Fahad Ali Alghanim, announced today the company’s financial results for the year ending 31 December, 2022, where he stated that the net profit attributable to the shareholders of the parent company increased by 27.46% to KD 18.7 million dinars, compared to KD 14.67 million in 2021. The exceptional results reflect the company’s operational efficiency, its robust strategy and its strong financial position, which are the main factors that enabled its success in the past year.
Alghanim highlighted that the company's total assets increased by 27.01% to KD 188.078 million at the end of 2022, compared to KD 148.085 million at the same time last year.
Alghanim also highlighted that the total equity attributable to the parent company's shareholders increased by 27.24% to KD 72.96 million on 31 December, 2022, compared to KD 57.34 million on December 31, 2021.
Alghanim also noted that the basic earnings per share attributable to the parent company's shareholders increased by 28.06% to 67.72 fils per share at the end of 2022, compared to earnings per share of 52.88 fils per share for 2021, and that the company's shares were listed on the premier market of the Kuwait Stock Exchange on June 7, 2022, making it the first family-owned car company to be listed across the Gulf markets.
Alghanim also announced that the company's Board of Directors proposed the distribution of cash profits to shareholders for the second half of the previous year at a rate of 34%, equivalent to 34 fils per share. This brings the total cash profit distribution to 57.78 fils per share for 2022, which exceeded the promised percentage of return to investors and shareholders before the company's listing at 47.58 fils per share, reflecting a growth rate of 21.43%.
Furthermore, Alghanim noted that the Board of Directors proposed a policy to distribute cash profits at a minimum of 58 fils per share for the fiscal year ending on December 31, 2023. This proposal comes after the company distributed cash profits to shareholders at a rate of 23.78% of the nominal share value, equivalent to 23.78 fils per share, for the first half of 2022 based on the decision of the General Assembly held on August 25, 2022. This reflects the company's commitment to its shareholders and its continuous growth and success.
Alghanim added that despite the economic and geopolitical challenges faced by the world, "Ali Alghanim Sons Automotive Company K.S.C.P.", was able to overcome them and achieve several milestones that it had aspired to.
He noted that one of the most significant achievements was a new regional accomplishment by entering the Egyptian market in 2022 through "Global Auto Cars," a subsidiary of " Ali Alghanim Sons Automotive Company K.S.C.P.", " which has the official supply rights for the "BMW" and "MINI" brands in Egypt.
Alghanim also revealed the reopening of the "BMW" car factory in Egypt, with the first vehicle of the brand coming out of production lines after a period of suspension. The factory has three production lines with a total capacity of up to 10,000 cars annually. Additionally, the company opened the latest "BMW" and "MINI" showrooms in the Egyptian city “Obour”.
He reported that the company, as part of its local expansion plans, has strengthened the presence of the "BMW" brand in Kuwait by opening a third showroom in Al Jahra Governorate, which includes a luxury showroom, a modern service center, and a spare parts center.
Alghanim continued that the company launched a new showroom for "Geely" cars in Al Jahra Governorate earlier this year, which includes a modern service center and a spare parts center.
He also pointed out the opening of a new fast service center in the Mansouriya area, bringing the total number of these centers to 13 at present, with the completion of construction work on the launch of the fourteenth center in the Abdullah Al-Mubarak area approaching as well.
Alghanim outlined the company's future goals, which include working closely with global companies to bring the best models to the Kuwaiti market. Additionally, the company aims to continue strengthening its long-term relationships with global companies to provide greater levels of high-demand vehicle inventory. Coordination with these companies has become even more important after the COVID-19 pandemic, as challenges to global supply chains have limited production in most industrial sectors. The company has been able to reduce the negative impact by requesting more vehicles with higher profit margins from among its designated vehicles, thanks to its strong relationships.
The company also aims to support the growth of the low-income segment. To achieve this goal, it has brought two rapidly growing brands, Great Wall Motors - Haval and Geely, to the market. Their brand growth rates in 2022 are 58% and 26%, respectively, compared to 2021, due to continuous improvements in Chinese technology and customer acceptance and changes in preferences.
The start of a journey:
Alghanim expressed his gratitude to the Board of Directors, executive management, and all employees for their invaluable contributions in implementing the company's strategy in 2022. Their unwavering commitment and dedication have led to the realization of the company's goals. He lauded the shareholders' support in advancing the journey of the company as a preeminent local and regional company in the automotive sector. He further expressed his pride in the success achieved, which marks the beginning of a promising journey of accomplishments that will benefit the shareholders and all stakeholders in the communities where the company operates in the future.
A 27% growth in assets to 188 million.
A 27.24% increase in shareholder equity to 72.96 million.
A 28.06% increase in earnings per share to 67.72 fils.