Car&General(K) Limited, a listed automotive firm, has posted a 308.8% rise in half–year 2026 earnings, the strong profitability driven by performance of its Watu subsidiary, firm motorcycle volumes and lower finance costs.
Car& General saw its revenues jump 30% to KSh15.64Bn, pushing up its Gross Profit to KSh2.96Bn, a growth of 39.5%
The firm’s EBITDA rose 131.8% to KSh3.56Bn, while pre-tax profit was up 281.5% to KSh2.88Bn +281.5%
Earnings per Share(EPS) for Car& General, an indicator of its profitability rose 306.26% to KSh 32.26.
Shareholders of Car& General will receive an interim dividend of KSh 1.00, an increase of 233.3%. This is, however, being viewed as underwhelming given the firm’s increase in profit and sales figures.
Car & General’s share of profit from its associate firm jumped 382.3% to KSh2.04Bn, supported by strong mobile-phone financing growth across Africa.
The core business also strengthened. Motorcycle sales averaged 12,000 units monthly, up from 7,000, while sales increased 40% in Kenya, 35% in Uganda and 22% in Tanzania.
Margins and financing improved. Gross profit grew faster than revenue, while finance costs fell 21.7% to KSh573.7million, supporting the sharp rise in pre-tax numbers.
Cash generation improved materially with Operating cash flow more than doubling to KSh1.97 billion, an increase of 118.5%, while cash balances increased to KSh674.5 million.
While Car& General has posted a very strong H1 performance, the key question remains earnings quality and sustainability.
Seasoned investor at the Nairobi Securities Exchange(NSE) Paul Wanderi Ndung’u has, meanwhile, seen the value of his Car & General holdings soar following the stock’s remarkable re-rating.
CGEN has climbed from KSh26.40 to KSh260, an 884.8% increase, lifting the value of his 8% stake of 6.42 million shares from approximately KSh169.5 million to KSh1.67 billion — a paper wealth increase of about KSh1.50 billion.
