Swvl Holdings Corp: Navigating the Mobility Landscape in H1 2024
Wednesday, Jan 1, 2025 5:34 pm ET
SWVL --

Swvl Holdings Corp (SWVL:NAQ) reported earnings results for the half year ended June 30, 2024, revealing a net loss of USD 5.69 million compared to net income of USD 2.08 million a year ago. The company's revenue for the half year was USD 8.07 million, down from USD 11.12 million in the same period last year. Basic loss per share from continuing operations was USD 0.67, compared to basic earnings per share from continuing operations of USD 0.32 a year ago. Diluted loss per share from continuing operations was also USD 0.67, compared to diluted earnings per share from continuing operations of USD 0.25 a year ago.
Swvl's net loss in H1 2024 can be attributed to several factors, including a decline in revenue and an increase in expenses. The company's revenue for the half year was USD 8.07 million, a decrease of USD 3.05 million (27.5%) compared to the same period last year. This decrease in revenue can be attributed to various factors, such as changes in market conditions, competition, or strategic decisions made by the company.
Cost of sales for the half year was USD 13.76 million, an increase of USD 1.63 million (17.5%) compared to the same period last year. This increase in cost of sales can be attributed to various factors, such as increased raw material costs, labor costs, or other operational expenses.
The combination of a decrease in revenue and an increase in cost of sales resulted in a significant decrease in gross income for the half year. Gross income was USD 1.74 million, a decrease of USD 5.59 million (76.5%) compared to the same period last year.
General and administrative expenses for the half year were USD 5.45 million, an increase of USD 2.67 million (95.7%) compared to the same period last year. This increase in expenses can be attributed to various factors, such as increased salaries, benefits, or other administrative costs.
Selling and marketing costs for the half year were USD 13.22 million, an increase of USD 11.26 million (132.6%) compared to the same period last year. This increase in expenses can be attributed to various factors, such as increased advertising, promotional activities, or other marketing-related costs.
Other expenses for the half year were USD 625,078, a decrease of USD 1.68 million (41.8%) compared to the same period last year. This decrease in expenses can be attributed to various factors, such as reduced legal fees, consulting fees, or other miscellaneous expenses.
Other income for the half year was USD 273,088, a decrease of USD 16.49 million (98.9%) compared to the same period last year. This decrease in other income can be attributed to various factors, such as reduced interest income, dividend income, or other non-operating income.
The combination of the decrease in revenue, increase in cost of sales, and increase in expenses resulted in an operating loss of USD 4.07 million for the half year. This operating loss, combined with the finance cost of USD 50,866 and the change in fair value of financial liabilities of USD 1.65 million, resulted in a net loss of USD 5.69 million for the half year.
Swvl's net loss in H1 2024 has had a significant impact on its overall financial health and stability. The company's net loss per share from continuing operations was USD 0.67 for both basic and diluted shares, compared to earnings per share of USD 0.32 and USD 0.25, respectively, in the same period last year. This reversal in earnings per share further emphasizes the negative impact on Swvl's financial health and stability.
Moreover, Swvl's revenue for the half year ended June 30, 2024, was USD 8.07 million, a decrease from USD 11.12 million in the same period last year. This decline in revenue, coupled with the net loss, suggests that Swvl is facing financial challenges that may affect its overall stability.
In addition, Swvl's balance sheet as of June 30, 2024, shows a decrease in total assets and equity compared to the same period last year. Total assets decreased from USD 21.89 billion to USD 14.07 billion, while equity decreased from USD 5.92 billion to USD 2.13 billion. This decrease in assets and equity further highlights the negative impact on Swvl's financial health and stability.
Swvl is implementing several strategic initiatives to improve its financial performance in the coming quarters. These include boosting profitability, launching new products, expanding strategic partnerships, and maintaining efficient operations. By focusing on these strategic initiatives, Swvl aims to maintain its positive momentum, further strengthen its financial position, and continue to deliver enhanced value to its shareholders and stakeholders in the future of the mobility landscape.
In conclusion, Swvl's net loss in H1 2024 has had a significant impact on its overall financial health and stability. The company's net loss, decline in revenue, and decrease in assets and equity indicate a deterioration in its financial performance. However, Swvl is committed to implementing strategic initiatives to improve its financial performance in the coming quarters and maintain its positive momentum in the mobility landscape.