Egytrans, the Egyptian logistics and transportation solutions company, announced in a report on Wednesday its consolidated results for the first quarter (Q1) of 2017, which witnessed 282.4% growth in revenues year-on-year (y-o-y) to EGP 11.05m, driven by the work in mega projects, as well as the performance of the company’s subsidiary, Egyptian Transport and Logistics (ETAL), in addition to the growth in regular business.
“The company maintained the growth across most of its business lines, with a continuation of the high curve from last year’s annual results, despite the relatively challenging operating environment,” the report said.
The company’s net profits after taxes for Q1 2017 came in at EGP 20.3m with a margin of 18.3%, compared to EGP 6.1m in Q1 2016 with a margin of 21.0%, mainly due to higher taxes during this quarter compared to the same quarter a year ago.
The growth in revenues was coupled with a considerable improvement on the cost/revenue ratio by 1,226 bps, to record 55.8% in Q1 2017 compared to 68.0% in Q1 2016, leading to a higher earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 37.5% against 11.4% for both quarters respectively.
“The rate of change in our financial metrics has been significant over the last twelve months,” stated Abir Leheta, chairperson of Egytrans. “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 quarter results demonstrate this step change in the cash flow generating capability and financial sustainability of our business,” she added.
Egytrans’ ETAL achieved net profits of EGP 8.7m in Q1 2017, compared to EGP 1.2m in Q1 2016. Egytrans Depot Solutions (EDS), another subsidiary of Egytrans, achieved net profits of $0.12m in Q1 2017 compared to $0.15m in Q1 2016, with a 19.7% decline.
Egytrans was established in 1973, with its transport activities and experience dating back to 1939. It is now a corporation with capital of EGP 156m and annual turnover of 190m.
