Egytrans delivers solid performance growing 5x market growth in first half 2019

Egytrans consolidated 1H19 Revenues increased by 25.7% to reach EGP 156.1 million driven by growth in regular business. Meanwhile, Net Profits after Taxes witnessed a slight decrease of 5.1%, reaching EGP 23.7 million down from EGP 25 million, registering a Net Profit Margin of 15.2% vis-a-vis a margin of 20.1% in 1H18, as a result of FX loss in the amount of EGP 3.3 million due to EGP appreciation in addition to a lower Net Interest Income which decreased by 58.4% to 1.5 million.

EBITDA margin lost 760.1 bps to reach 19.6% vs. 27.2% for both halves respectively, pulled down by the increase in operating costs by 49% in 1H19 while Cost/Revenues ratio rose to 1,071.6 bps to record 68.6% in 1H19 vis-à-vis 57.9% in the same period of the previous year as a result of decrease in projects business line. In the meantime, cash balance decreased by 28.6% to EGP 87.1 million by end of 1H19 down from EGP 122 million by end of 2018. This decline was as a result of paying dividends to shareholders of EGP 1/share in addition to profit share paid out to employees and members of the BoD as well as payment of some of the company’s liabilities.

Egytrans’ separate revenues reached EGP 137.4 million, registering a 30.1% increase Y-o-Y. In the meantime, costs increased to EGP 103.1 million. On the other hand, SG&A added 8.7% to EGP 15.7 million. As a result, EBITDA margin declined 13.3% to EGP 18.5 million in first half of 2019 from EGP 21.3 million in first half of 2018. Net profits after taxes decreased by 12.5% to EGP 25.5 million in the first half of 2019 vis-à-vis EGP 29.2 million a year ago, representing net profit margin of 18.6% in first half of 2019 vis-à-vis 27.6% in first half of 2018.

Egyptian Transport & Logistics (ETAL), recorded a slight 2.7% decrease in 1H19 revenues recording EGP 10.1 million. Meanwhile, Net Profits after Taxes increased by 3% Y-o-Y to EGP 3.4 million in 1H19 mainly due to lower taxes which dropped 71.2% to EGP 0.8 million in 1H19 compared to EGP 2.7 million registered during the same period last year.

Egytrans Depot Solutions (EDS), a fully owned subsidiary of Egytrans, specializing in storing, cleaning and repairing liquid bulk cargo containers (ISO Tanks), recorded a remarkable jump in its 1H19 Net Profits after Taxes to USD 0.267 million vis-a-vis USD 0.175 million in 1H18. On the top-line level, revenues recorded an increase of 8.2% recording USD 0.499 million in 1H19 as opposed to USD 0.461 million in 1H18.

In terms of outlook in a context of geopolitical uncertainty, Egytrans continues to focus its efforts on operational efficiency, cost control and the rationalization of its activities and brands. In addition, the positive momentum generated by the diversification strategy will gradually enable Egytrans to benefit from a less volatile and more diversified environment.

According to Leheta “Thanks to all the measures put in place, Egytrans is confident for the second half of 2019.” Egytrans will continue to focus on its strategic priorities of Portfolio, Performance and Trust working to further improve financial performance, and continue to develop innovative solutions responding to the new needs of its customers.