Car & General shareholders are set to receive a dividend payout of Ksh 64 million following the company’s return to profitability. The decision was made during the firm’s virtual Annual General Meeting held on Thursday, where shareholders approved a Ksh 0.80 per share dividend as recommended by the board.
The dividend announcement marks a significant recovery for the company, which reported a gross profit of Ksh 526 million, a stark contrast to the Ksh 273 million loss recorded the previous year. The rebound comes despite ongoing challenges in the Kenyan market, particularly within the boda boda (motorcycle taxi) sector a traditionally strong segment for Car & General.
According to Chief Executive Officer Vijay Gidoomal, the company’s turnaround was driven by strategic diversification and a shift toward more sustainable business lines. “Key to success will be maintaining strict fundamentals in terms of higher efficiency levels in all areas of business, maintaining market share in core products, and achieving productivity across all business,” said Gidoomal.
Car & General reported a full-year turnover of Ksh 21 billion in 2023 and remains optimistic about continued growth this year, despite global economic uncertainty. The company anticipates that while global geopolitics may present ongoing challenges, the East African region is likely to experience less turbulence.
The firm attributes its resilience to a balanced portfolio spread across five core business lines: automotive and equipment distribution, real estate investment, financial services, poultry, and helmet manufacturing. This diversification, combined with a broad geographical presence, has been crucial in maintaining operational sustainability.
During the AGM, shareholders also approved changes to the company’s board. Long-serving board member Madabhushi Soundararajan retired after 17 years of service. In his place, shareholders approved the appointment of Nikhil Rustam Hira as an Independent Non-Executive Director, signaling a new chapter in governance for the company.
Car & General’s performance turnaround, strategic diversification, and renewed governance structure reflect its commitment to long-term growth and shareholder value, positioning it as a resilient player in the region’s business landscape.
