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Car And General HY15 PAT down 77%
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Pesa Nane
#1 Posted : Friday, May 22, 2015 1:40:56 PM
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Joined: 5/25/2012
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Location: 08c
CAR & GENERAL (KENYA) LIMITED

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 31 MARCH 2015


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Pesa Nane plans to be shilingi when he grows up.
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Pesa Nane
#2 Posted : Friday, May 22, 2015 1:54:08 PM
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Pesa Nane plans to be shilingi when he grows up.
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mlennyma
#3 Posted : Friday, May 22, 2015 2:30:01 PM
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Add to the growing list of monkeys.
"Don't let the fear of losing be greater than the excitement of winning."
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FUNKY
#4 Posted : Friday, May 22, 2015 2:56:19 PM
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Foreign exchange losses have hit them badly
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VituVingiSana
#5 Posted : Friday, May 22, 2015 7:00:22 PM
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Foreign Exchange losses are going to hit many Kenyan firms that:

1) Are net importers
2) Have regional operations as most African countries have useless currencies unlike. Zim which uses the USD.
3) Have forex loans
4) Can't pass on the forex cost/loss to customers.

It's tough being in business in Kenya (among other African countries) hence the required rate of return is much higher than USA or Germany.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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whiteowl
#6 Posted : Friday, May 22, 2015 11:18:23 PM
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And the way this share has been described as a good long term bet.With the ever slumping econ, I wonder how long that long term can be.
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Mainat
#7 Posted : Saturday, May 23, 2015 7:48:33 AM
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There are 3/4 things that should cheer the shareholders. -C&G is still growing volumes and growing them fast relative to GDP which were 12% (net of CoS).
-Gross margins therefore remain strong despite the fact that a lot the machines it then sells are imported.
-Given its regional focus, its a surprise that fx took a bite. However up until end of March, the Ksh was outperforming regional currencies many which are not even managed. Now Ksh is has fallen so my expectation is that we'll see a better performance in H2.

-There are elements that can be controlled like interest expense and admin expenses should things not pick up.
Sehemu ndio nyumba
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Pesa Nane
#8 Posted : Tuesday, May 26, 2015 11:43:50 AM
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Mainat wrote:
There are 3/4 things that should cheer the shareholders. -C&G is still growing volumes and growing them fast relative to GDP which were 12% (net of CoS).
-Gross margins therefore remain strong despite the fact that a lot the machines it then sells are imported.
-Given its regional focus, its a surprise that fx took a bite. However up until end of March, the Ksh was outperforming regional currencies many which are not even managed. Now Ksh is has fallen so my expectation is that we'll see a better performance in H2.

-There are elements that can be controlled like interest expense and admin expenses should things not pick up.

The significance of the forex loses is not occasioned by the Ksh/Tsh/Ush relative exchange rates but by the USD dominated loan exposure. Things only get tougher with the continued devaluation of the Ksh.
Pesa Nane plans to be shilingi when he grows up.
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sparkly
#9 Posted : Tuesday, May 26, 2015 12:11:16 PM
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This is a share that performs well on paper but gives measly returns to the non controlling shareholders. If I was a shadeholder, i would want to examine loans from directors, preference shareholding, directors fees and related company sales.
Life is short. Live passionately.
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VituVingiSana
#10 Posted : Tuesday, May 26, 2015 11:50:39 PM
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sparkly wrote:
This is a share that performs well on paper but gives measly returns to the non controlling shareholders. If I was a shadeholder, i would want to examine loans from directors, preference shareholding, directors fees and related company sales.

+1
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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VituVingiSana
#11 Posted : Tuesday, May 26, 2015 11:59:36 PM
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Pesa Nane wrote:
Mainat wrote:
There are 3/4 things that should cheer the shareholders. -C&G is still growing volumes and growing them fast relative to GDP which were 12% (net of CoS).
-Gross margins therefore remain strong despite the fact that a lot the machines it then sells are imported.
-Given its regional focus, its a surprise that fx took a bite. However up until end of March, the Ksh was outperforming regional currencies many which are not even managed. Now Ksh is has fallen so my expectation is that we'll see a better performance in H2.

-There are elements that can be controlled like interest expense and admin expenses should things not pick up.

The significance of the forex loses is not occasioned by the Ksh/Tsh/Ush relative exchange rates but by the USD dominated loan exposure. Things only get tougher with the continued devaluation of the Ksh.
The TZ and UG businesses are small relative to KE but the problem is that most of C&G's imports are in USD (or other hard currency) thus the cost of goods keeps on rising hurting profits. Add to that the high interest rates. Can C&G ride the bad times while its competitors collapse?
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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VituVingiSana
#12 Posted : Wednesday, May 27, 2015 12:07:31 AM
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Pesa Nane wrote:
Mainat wrote:
There are 3/4 things that should cheer the shareholders. -C&G is still growing volumes and growing them fast relative to GDP which were 12% (net of CoS).
-Gross margins therefore remain strong despite the fact that a lot the machines it then sells are imported.
-Given its regional focus, its a surprise that fx took a bite. However up until end of March, the Ksh was outperforming regional currencies many which are not even managed. Now Ksh is has fallen so my expectation is that we'll see a better performance in H2.

-There are elements that can be controlled like interest expense and admin expenses should things not pick up.

The significance of the forex loses is not occasioned by the Ksh/Tsh/Ush relative exchange rates but by the USD dominated loan exposure. Things only get tougher with the continued devaluation of the Ksh.
The KES is going to hit 100 at this rate! Those USD/Euro/GBP loans will be very pricey!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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VituVingiSana
#13 Posted : Wednesday, May 27, 2015 12:09:43 AM
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whiteowl wrote:
And the way this share has been described as a good long term bet.With the ever slumping econ, I wonder how long that long term can be.
Very few firms can escape the destruction caused by a slumping economy.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Pesa Nane
#14 Posted : Friday, July 01, 2016 5:21:22 PM
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Pesa Nane plans to be shilingi when he grows up.
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Pesa Nane
#15 Posted : Friday, September 16, 2016 10:17:07 AM
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Pesa Nane plans to be shilingi when he grows up.
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bartum
#16 Posted : Friday, September 16, 2016 1:11:08 PM
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Pesa Nane wrote:

Does this take away existing business of C & G
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VituVingiSana
#17 Posted : Friday, September 16, 2016 3:12:30 PM
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C&G is a conglomerate in multiple lines of businesses mostly related to engineering and property.
This is good for C&G as it can expand its reach into "greater" EAC with a well-known brand with a wide range of products.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Pesa Nane
#18 Posted : Friday, September 16, 2016 10:25:05 PM
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VituVingiSana wrote:
C&G is a conglomerate in multiple lines of businesses mostly related to engineering and property.
This is good for C&G as it can expand its reach into "greater" EAC with a well-known brand with a wide range of products.


@Vitu, I don't see the positive side of this partnership. It's a parasitic relationship host being C&G

1. C&G is already present in the 11 countries mentioned. Further, only those 11 countries make up the JV territories in the agreement. So, C&G gets zero new territory; Cummins gains 11 new territories.

2. C&G is already the sole distributor of Cummins brand in territory. First distributor agreement done in 2006. So, from 100% of the pie to 50% of the same size pie.

3. Now C&G will be tied to Cummins, so bye bye to any potential trade deals with cummins competitors (Caterpillar etc), sale of parts, servicing, installations

4. C&G is mature in the territory markets grossing over USD 30 Million in revenues in 2015, with a genset market share north of 15% in Kenya, Uganda and Tanzania. Only cummins is set to reap from the partnership

5. In the wording of the announcement "The joint venture will take over the full-line distributor business from C&G"
C&G are (sole) distributors / dealers of other (super) brands outside of generators; TVS motorbikes, Piaggio 3-wheelers, Briggs & Stratton machines, Mariner Outboard Engines, Doosan heacy equipment, Garmin devices, Kubota tractors, MRF tyres, Toyota Forklifts, etc Anxious

but I could be wrong.
Pesa Nane plans to be shilingi when he grows up.
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Cornelius Vanderbilt
#19 Posted : Sunday, September 18, 2016 3:24:39 PM
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Joined: 8/15/2015
Posts: 817
with the current car boom you could have thought they made something !!!
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