Egytrans, a provider of logistics and transportation solutions in Egypt, announced its consolidated revenues increased 42.8% to EGP 89m in first quarter (Q1) of fiscal year (FY) 2019 with its regular core business continuing its upward trend from 2018 showing growth of 48% in a market that grows 4.2% annually.
The company’s net profits after taxes for Q1 increased by 26.9%, reaching EGP 17.6m up from EGP 13.8m.
Additionally, separate revenues reached EGP 79.5m, registering a 58.2% year-over-year (y-o-y) increase. In the meantime, costs increased by 52.7% to EGP 58.1m.
On the other hand, selling, general, and administrative expenses and costs (SG&A) increased by a mere 2.1% recording EGP 7.9m. As a result, earnings before interest, tax, depreciation, and amortisation (EBITDA) margin surged by 204.3% to EGP 13.4m in Q1of 2019 compared to EGP 4.4m in Q1 of 2018.
Furthermore, net profits after taxes increased by 25% to EGP 23.7m in Q1of 2019 compared to EGP 19m in Q1of 2018, representing net profit margin of 37.8% and 29.9% for both years respectively.
Egytrans Depot Solutions (EDS), a fully owned subsidiary of Egytrans, specialises in storing, cleaning, and repairing ISO Tanks. EDS’ performance has shown a remarkable growth of 12.2% during Q1of 2019 over Q1 of 2018 with the company continuing to hold 70% market share in its segment.
Moreover, EDS recorded 8.8% increase in its Q1 of 2019 net profits after taxes to $0.141m compared to $0.079m in Q1 of 2018, while revenues recorded an increase of 12.2% to $0.257m as opposed to $0.229m in Q1 of 2018.
Abir Leheta, chairperson of Egytrans said, “we continue to focus on increasing top line and improving profitability and our results are a confirmation of that. The strong performance of Egytrans’s core business is especially encouraging,” adding that Egytrans’s ongoing strategy is to elevate the core business line “with our increased focus, operational efficiency, and increased customer engagement continues to drive traction in this segment. Going forward, we see even greater potential for this business.”
This performance was achieved in spite of the World Trade Organization’s revising its trade-growth outlook for 2019, down to 3.7% from the original 4.4%. Leheta is optimistic, pointing out that Egytrans’s performance in 2018 represented a record year for its core business in spite of growing trade tensions impacting global trade.