Egytrans, provider of logistics and transportation solutions in Egypt, announced on Sunday its consolidated results for the first half (H1) of 2018.
The results shows that H1 saw an expected decline in Egytrans’ consolidated revenues by 45.4% year-over-year to reach EGP 124.1m, driven in main by the slowdown of revenue stream from the projects line of business.
The statement noted that the decline was partially offset by a marked improvement in regular business lines revenues such as Sea Freight, Air Freight, and Free Zone. In the meantime, cost/revenues ratio added 433.8 basis points (bps) to record 57.9% in H1 2018 compared to 53.5% in H1 2017. This has led to a drop of 1,255.1 bps in earnings before interest, tax, depreciation, and amortisation (EBITDA) margin to 27.2% compared to 39.7% for H1 2018 and H1 2017 respectively.
The statement pointed out that net profits after taxes for the year, in line with expectations, registered a decline of 59.5%, reaching EGP 25.0m down from EGP 61.6m. Accordingly, the net profit margin fell to 20.1% compared to a margin of 27.1%. This decline also resulted from 92.6% lower FX Gains of EGP 0.32m, countered by 141.4% increase in net interest income and 70% lower provisions of EGP 2.7m.
Abir Leheta, chairperson of Egytrans said, “we continued to focus our portfolio around high-margin, high rate-of-return business, implement meaningful cost reductions across our business, and strengthen our financial position, while seeing structural improvements. Our first half results demonstrate this step change in the cash flow generating capability and financial sustainability of our business.”
Egytrans’ separate revenues reached EGP 105.6m (42.8% drop y-o-y). Meanwhile Costs decreased 39.1% to EGP 69.8m.
On the other hand, selling, general and administrative expense (SG&A) increased by 13.3% to EGP 14.5m. As a result, EBITDA margin lost 1,085.4 bps to register 20.2% (EGP 21.3m) versus 31.0% (EGP 57.3m) in H1 2018 and H1 2017, respectively.
Net profits after taxes decreased 45.1% to EGP 29.2m in H1 2018 compared to EGP 53.1m in the year-ago period. This was despite the 73.1% decrease in taxes, which recorded EGP 4.4m compared to EGP 16.3m for both respective periods.
The company recorded a sharp decline of 69.2% in y-o-y revenues to EGP 10.4m, in accordance with expectations and within budget for 2018. Costs were reduced by 64.4% to EGP 2.5m, offset by an increase in SG&A of EGP 2.2m. Net profits after taxes shrank to EGP 3.3m in H1 2018 from EGP 19.2m in H1 2017, mainly due to absence of mega projects.