Transport and logistics company Egytrans has announced an 11.1% year-over-year decrease in revenues, reaching EGP 247m in its annual results for the fiscal year (FY) 2018/19. The decrease comes in spite of the company increasing its work outputs, resulting in a 2.7-fold growth in the company’s core business.
As a result, net income after tax for the year declined by 23.8% to EGP 31.9m down from EGP 41.8m in 2018. The latest figures register a net profit margin of 12.9%, compared to 15.0% in 2018.
This was mainly due to a decline of 34.0% in investment income, coupled with a 90% drop in net interest income. The decline is due to booking FX losses from the EGP appreciation against the US dollar.
The net profits decline was mitigated by a significant 2.7-fold increase in revenues from other lines of business, with a continued emphasis on cost and cash discipline. This comes in addition to a three-fold decrease in annual taxes.
The group’s net operating profit margin showed a marginal decline from 15.5% recorded in 2018, reaching 14% in 2019. The decline is the main result of the increase in Selling, General and Administrative (SG&A) sales ratio from 13.0% to 15.0%. This was despite the slight improvement in cost/revenues ratio from 71.5% in 2018, to 71% in 2019.