Egypt’s Egytrans posts Q1 record revenue, profit growth
Egyptian Transport and Commercial Services Co – Egytrans announced on Wednesday its consolidated results for the first quarter of the financial year 2019.
Egytrans posted record revenue and higher profits in the first quarter of 2019 as strong freight demand boosted demand for land transport and storage services. The growth was underscored by the signing on of key customers with potential for growth.
“We continue to focus on increasing topline and improving profitability and our results are a confirmation of that. The strong performance of Egytrans’ core business is especially encouraging,” Egytrans’ chairperson Abir Leheta said.
Egytrans’ ongoing strategy to elevate the core business line “with our increased focus and operational efficiency and increased customer engagement continues to drive traction in this segment. Going forward, we see even greater potential for this business.” Leheta added.
This performance was achieved in spite of the World Trade Organization’s revising its trade-growth outlook for 2019, down to 3.7 percent from the original 4.4 percent. Leheta is optimistic; pointing out that Egytrans performance in 2018 represented a record year for its core business in spite of growing trade tensions impacting global trade.
Egytrans’ consolidated first quarter revenues increased 42.8 percent to 89 million Egyptian pounds ($5.36 million) with its regular core business continuing its upward trend from 2018 showing growth of 48 percent in a market that grows 4.2 percent annually.
Core growth drivers are increased customer acquisition along with transport sector showing steady market expansion in the three-month period. Net Profits after Taxes for the quarter increased by 26.9 percent, reaching 17.6 million pounds up from 13.8 million pounds. Positive performance in selling, general and administrative expenses and costs reflected increased focus on cost and cash discipline in addition to an upward trend of operational efficiency.
Egytrans’ separate revenues reached 79.5 million pounds, registering a 58.2 percent y-o-y increase. In the meantime, costs increased by 52.7 percent to 58.1 million pounds. On the other hand, SG&A increased by a mere 2.1 percent recording 7.9 million pounds. As a result, EBITDA margin surged by 204.3 percent to 13.4 million pounds in the first quarter of 2019, compared to 4.4 million pounds in the first quarter of 2018. Net Profits after Taxes increased by 25 percent to 23.7 million pounds in the first quarter of 2019 vis-à-vis 19 million pounds in the first quarter of 2018, representing net profit margin of 37.8 percent and 29.9 percent for both years respectively.
Egyptian Transport & Logistics (ETAL), a fully-owned subsidiary of Egytrans, executes specialised transport and installation of cargos with exceptional weight and dimensions for large projects, in addition to other operations. Final delivery of ETAL’s projects business in the first quarter continued on track with heavy lift transport and lifting for West Cairo and Assiut-Walidiya power stations in the final stages. With the closure of current projects, the first quarter revenues declined 37.8 percent, in y-o-y revenues to 5 million pounds. Meanwhile, net profits after taxes dropped 70.3 percent y-o-y to 1.2 million pounds in the first quarter of 2019. Taxes declined 89.8 percent to 0.16 million pounds in the first quarter of 2019, compared to 1.6 million pounds a year ago.
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 percent during 1Q19 over 1Q18 with the company continuing to hold 70 percent market share in its segment. EDS recorded 8.8 percent increase in its first quarter net profits after taxes to $0.141 million vis-a-vis $0.079 million in the first quarter of 2018, while revenues recorded an increase of 12.2 percent to $0.257 million as opposed to $0.229 million in the first quarter of 2018.
Looking beyond the numbers, ETAL has recently added a Gantry Crane to its considerable fleet of specialised equipment. The first of its kind owned and operated by an Egyptian company, this Crane is expected to facilitate the installation process of mega projects requiring lifting services, thereby giving the company a competitive advantage in turn-key heavy lift projects. The recently acquired crane has successfully completed its first lifting and installation operations for a 245-tonne turbine and a 290-tonne generator in West Cairo power station. Meanwhile Egytrans’ pilot project in transport has been expanded to include an additional five trucks, following a successful initial year in 2018.