Swvl Records $3.1m Net Profit, 13% Net Margin, and  an Eightfold Growth in Gross Profit By Investing.com



8x Gross Profit growth year on year to $4.1 million

Achieved cash flow positivity, with self-funded growth

Profitable growth drove earnings per share from continuing operations to $0.61

Strong balance sheet with no debt and more than doubled the positive equity value compared to 2022

DUBAI, United Arab Emirates, April 30, 2024 (GLOBE NEWSWIRE) — Swvl Holdings Corp (Swvl or the Company) (Nasdaq: SWVL), a technology provider for enterprise and government mobility solutions with a global footprint, announces a significant achievement in its financial performance for the fiscal year 2023. The Company has successfully delivered positive net profit and cashflow for the full year.

Continuing the positive momentum established in the initial half of the fiscal year, Swvl completed the path to profitability program initiated in 2022. The Company is committed to boosting profitability further while concurrently resuming strategic expansions into high-revenue markets.

Financial Highlights for Fiscal Year Ended December 31, 2023:

  • Net Profit: $3.1 million, a turnaround from a net loss of $123.6 million in 2022
  • Gross Profit: Increased more than eightfold to $4.1 million from $0.5 million in 2022
  • Operating Profit: $12.1 million, compared to an operating loss of $80.2 million in 2022
  • Earnings Per Share: Profitable growth boosted basic earnings per share from continuing operations to $0.61
  • Balance Sheet Strength: Ended the year with a strong balance sheet, no debt, and an equity value more than double that of the prior year, at $5.9 million
  • Equity Book Value: Total equity book value of $5.9 million as of December 31, 2023, compared to $2.6 million as of December 31, 2022
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.

This result marks Swvl’s swift transition to profitability, highlighting a focus on financial stability and operational efficiency, and the effective implementation of profitability strategies during the fiscal year. The Company’s continuous efforts to maintain positive cash flow and profitability support its upcoming planned expansion into high-revenue markets.

Mostafa Kandil, CEO of Swvl, stated, In 2023, our team demonstrated exceptional skill and dedication, achieving profitability. As we advance, our commitment to innovation will be marked by the launch of a wide range of products slated for the upcoming year and for our new potential markets. Additionally, in the meantime, we are expanding our strategic partnerships into more Gulf Cooperation Council (GCC) countries. Our focus today remains towards improving profitability while resuming our high paced growth.

Post December 31, 2023, Swvl continued to make strides to further solidify its financial position, focusing on increasing margins and maintaining efficient operations. Swvl remains focused on sustaining this positive momentum, further strengthening its financial position, and continuing to deliver enhanced value to its shareholders and stakeholders in the future of the mobility landscape.

For detailed financial information, please see Appendix A for the consolidated financial statements. This press release, along with complete financial statements and the investor presentation, can be found in the Investor Relations section of Swvl’s website at https://www.swvl.com

About Swvl

Swvl is a global technology provider for enterprise and government mobility solutions. The company’s platform provides alternatives to public transportation for individuals who cannot access or afford private options. Every day, Swvl’s parallel mass transit systems empower individuals to go where they want, when they want “ making mobility safer, more efficient, accessible, and environmentally friendly. Customers can book their rides on an easy-to-use proprietary app with varied payment options and access to high-quality private buses and vans.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.

For additional information about Swvl, please visit www.Swvl.com.

Forward Looking Statements

This press release contains forward-looking statements” relating to future events. Forward-looking statements generally are accompanied by words such as believe, may, will, estimate, continue, anticipate, intend, expect, should, would, plan, predict, potential, seem, seek, future, outlook and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding future events and other statements that are not historical facts. For example, Swvl is using forward looking statements when it discusses its commitment to boosting profitability further while concurrently resuming strategic expansions into high-revenue markets, its intention to launch of a wide range of products slated for the upcoming year, its intention to expand strategic partnerships into more GCC countries, and that its focus remains towards improving profitability while resuming its high paced growth. These statements are based on the current expectations of Swvl’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Swvl. These statements are subject to a number of risks and uncertainties regarding Swvl’s business, and actual results may differ materially. In addition, forward-looking statements provide Swvl’s expectations, plans or forecasts of future events and views as of the date of this communication. Swvl anticipates that subsequent events and developments could cause Swvl’s assessments and projections to change. However, while Swvl may elect to update these forward-looking statements in the future, Swvl specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Swvl’s assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon any forward-looking statements. Except as otherwise required by law, Swvl undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. More detailed information about the risks and uncertainties affecting the Company is contained under the heading Risk Factors in the Company’s annual report on Form 20-F for the fiscal year ended December 31, 2023 filed with the U.S. Securities and Exchange Commission (the SEC), which is available on the SEC’s website, www.sec.gov, and in subsequent SEC filings.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.

Contact
Investor.relations@Swvl.com

Consolidated statement of financial positionAs of 31 December 2023
(All amounts are shown in USD unless otherwise stated)
           
    2023   2022  
ASSETS      
Non-current assets      
Property and equipment   751,693   1,270,838  
Intangible assets   225,776   10,534,278  
Right-of-use assets   484,362   815,646  
Sublease receivables     553,029  
Deferred tax assets   9,468,808   18,708,988  
    10,930,639   31,882,779  
       
Current assets      
Trade and other receivables   5,327,877   14,815,432  
Prepaid expenses and other current assets   2,142,194   3,298,377  
Sublease receivables   571,022   648,523  
Cash and cash equivalents   2,922,755   1,538,347  
    10,963,848   20,300,679  
Assets classified as held for sale   1,261   5,279,098  
Total assets   21,895,748   57,462,556  
       
EQUITY AND LIABILITIES      
EQUITY      
Share capital   16,979   13,903  
Share premium   347,295,152   343,435,529  
Employee share scheme reserve   507,677   773,666  
Foreign currency translation reserve   (11,466,066 ) (4,347,257 )
Reserve of disposal groups classified as held for sale   2,106,737   (492,474 )
Accumulated losses   (329,506,304 ) (332,562,780 )
Equity attributable to equity holders of the Parent Company   8,954,175   6,820,587  
       
Non-controlling interests   (3,039,317 ) (4,191,394 )
Total equity   5,914,858   2,629,193  
       
LIABILITIES      
Non-current liabilities      
Provision for employees’ end of service benefits     267,751  
Derivative warrant liabilities   106,420   1,317,091  
Deferred purchase price     194,093  
Accounts payable, accruals and other payables   83,961    
Lease liabilities   1,021,716   1,592,111  
    1,212,097   3,371,046  
       
Current liabilities      
Deferred purchase price   1,207,682   7,425,488  
Accounts payable, accruals and other payables   7,829,837   33,418,502  
Current tax liabilities   627,068   1,027,404  
Due to related party   131,523    
Lease liabilities   640,695   751,015  
    10,436,805   42,622,409  
Liabilities directly associated with assets classified as held for sale   4,331,988   8,839,908  
Total liabilities   15,980,890   54,833,363  
Total equity and liabilities   21,895,748   57,462,556  
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.
Consolidated statement of comprehensive loss – For the year ended 31 December 2023
(All amounts are shown in USD unless otherwise stated)
 
    2023   2022   2021  
Continuing operations        
Revenue   22,852,263   44,099,610   25,563,945  
Cost of sales   (18,741,277 ) (43,581,963 ) (31,349,979 )
Gross income/(loss)   4,110,986   517,647   (5,786,034 )
         
General and administrative expenses   (10,226,561 ) (62,918,437 ) (69,029,507 )
Selling and marketing expenses   (93,431 ) (17,520,448 ) (12,190,989 )
Provision for expected credit losses   (535,340 ) (873,442 ) (1,101,614 )
Other income/(expenses), net   18,834,177   548,823   (807 )
Operating profit / (loss)   12,089,831   (80,245,857 ) (88,108,951 )
         
Finance income   97,553   209,434   126,449  
Loss on disposal of subsidiaries   (8,285,250 )    
Change in fair value of financial liabilities   1,210,671   109,720,648   (44,330,400 )
Change in fair value of deferred purchase price   727,134   31,844,346    
Change in fair value of employee share compensation schemes   (1,636,738 ) 36,155,857    
Recapitalization cost     (139,609,424 )  
Impairment of financial assets     (10,000,880 )  
Impairment of assets     (46,381,441 )  
Finance cost   (129,355 ) (3,666,643 ) (1,494,693 )
Profit / (loss) before tax from continuing operations   4,073,846   (101,973,960 ) (133,807,595 )
         
Income tax benefit   41,305   3,225,251   4,718,036  
         
Profit / (loss) for the year from continuing operations   4,115,151   (98,748,709 ) (129,089,559 )
         
Discontinued operations        
Loss for the year from discontinued operations   (1,058,675 ) (24,830,739 ) (12,399,838 )
Profit / (loss) for the year   3,056,476   (123,579,448 ) (141,489,397 )
         
Attributable to:        
Equity holders of the Parent Company   3,056,476   (116,496,525 ) (141,416,132 )
Non-controlling interests     (7,082,923 ) (73,265 )
    3,056,476   (123,579,448 ) (141,489,397 )
         
Profit / (loss) per share attributable to equity holders of the Parent Company        
Basic   0.45   (18.28 ) (20.92 )
Diluted   0.28   (18.28 ) (20.92 )
         
Profit / (loss) per share attributable to equity holders of the Parent Company for continuing operations        
Basic   0.61   (14.61 ) (19.10 )
Diluted   0.37   (14.61 ) (19.10 )
         
Other comprehensive income        
Items that may be reclassified subsequently to profit or loss:        
Exchange differences on translation of foreign operations, net of tax   (5,299,295 ) (5,290,594 ) (409,511 )
Total comprehensive loss for the year   (2,242,819 ) (128,870,042 ) (141,898,908 )
         
Attributable to:        
Equity holders of the Parent Company   (2,242,819 ) (121,787,119 ) (141,825,643 )
Non-controlling interests     (7,082,923 ) (73,265 )
    (2,242,819 ) (128,870,042 ) (141,898,908 )
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.

               

Consolidated statement of cash flows – For the year ended 31 December 2023
(All amounts are shown in USD unless otherwise stated)
 
  2023   2022   2021  
       
Profit / (loss) before tax from continued operations 4,073,846   (101,973,960 ) (133,807,595 )
Loss before tax from discontinued operations (1,058,675 ) (24,830,739 ) (12,399,838 )
Profit / (loss) for the year before tax 3,015,171   (126,804,699 ) (146,207,433 )
       
Adjustments to reconcile profit before tax to net cash flows:      
Depreciation of property and equipment 356,288   604,304   182,402  
Depreciation of right-of-use assets 364,116   1,216,495   541,218  
Amortization of intangible assets 32,375   2,455,243   15,963  
Provision for expected credit losses 535,340   873,442   1,327,104  
Loss from sale of subsidiaries 8,285,250      
Other income (18,834,177 )    
Gain on recognition of sublease receivable   (87,026 )  
Sublease income (37,706 ) (8,340 )  
Provision for employees’ end of service benefits, net of reversals   (171,447 ) 704,614  
Finance cost 12,192   3,466,593   1,400,067  
Listing costs   139,609,424    
Change in fair value of deferred purchase price (727,134 ) (31,844,346 )  
Change in fair value of financial liabilities (1,210,671 ) (109,720,648 ) 44,330,400  
Impairment of assets   46,381,441    
Impairment of financial assets   10,000,880    
Employee share-based payments charges / (reversals) 285,651   (36,155,857 ) 33,611,231  
  (7,923,305 ) (100,184,541 ) (64,094,434 )
Changes in working capital:      
Trade and other receivables 3,917,812   (11,489,377 ) (4,825,451 )
Prepaid expenses and other current assets 995,660   (2,584,987 ) (868,620 )
Accounts payable, accruals and other payables (6,471,125 ) (3,571,712 ) 8,259,002  
Current tax liabilities 244,206   793,105   (635,821 )
Due to related parties 131,523     36,091  
  (9,105,229 ) (117,037,512 ) (62,129,233 )
Payment of employees’ end of service benefits   (635,314 ) (5,507 )
Net cash flows used in operating activities (9,105,229 ) (117,672,826 ) (62,134,740 )
       
Cash flows from an investing activity      
Purchase of property and equipment (17,237 ) (817,586 ) (319,471 )
Proceeds from disposal of subsidiaries 8,400,000      
Purchase of financial assets     (10,000,880 )
Payment for acquisition of subsidiary, net of cash acquired   (743,292 ) (823,446 )
Sublease rentals received 668,236   138,410    
Purchase of financial assets   (5,000,010 )  
Purchase of intangible assets (258,151 ) (1,666,934 ) (2,222 )
Net cash flows generated from / (used in) investing activities 8,792,848   (8,089,412 ) (11,146,019 )
       
Cash flows from financing activities      
Proceeds from issuance of share capital 789,462   60,787,038    
Proceeds from issuance of convertible notes   26,336,000   73,206,415  
Proceed from PIPE subscription   39,664,000    
Payments of external loan   (134,830 )  
Repayment of loan from related party   (195,270 )  
Finance cost paid   (543,432 ) (2,653 )
Finance lease liabilities paid, net of accretion (445,571 ) (850,773 ) (482,389 )
Net cash flows generated from financing activities 343,891   125,062,733   72,721,373  
       
Net increase / (decrease) in cash and cash equivalents 31,510   (699,505 ) (559,386 )
Cash and cash equivalents at the beginning of the year 2,696,276   9,529,723   10,348,732  
Effects of exchange rate changes on cash and cash equivalents 196,230   (6,133,942 ) (259,623 )
Cash and cash equivalents at the end of the year 2,924,016   2,696,276   9,529,723  
Non-cash financing and investing activities:      
Settlement of deferred purchase price 5,377,829      
Issuance of shares during the year 3,073,237   3,432,493    
Fair value of shares earnouts   (75,550,455 )  
Acquisitions of non-controlling interests   (3,036,641 )  
Costs attributable to the issuance of shares   8,467,766    
Conversion of convertible notes   145,952,505    
Property and equipment additions through acquisition of business   (586,452 )  
Intangible assets additions through acquisition of business   (20,580,000 )  
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or
remove ads
.





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *