Swvl (SWVL) H1 2024 earnings summary

Executive summary

• Swvl Holdings Corp reported a net loss of $5.69 million for H1 2024, reversing a profit of $2.08 million in H1 2023, with revenue declining 27% year-over-year to $8.07 million due to strategic focus on profitable routes and currency devaluation.

• The company’s shareholders’ equity was negative $2.13 million as of June 30, 2024, but subsequent equity financing of $4.7 million restored compliance with Nasdaq’s minimum equity listing requirement.

• Swvl continues to focus on profitability, reducing cost of sales by 32% and maintaining minimal sales and marketing expenses, while expanding B2B contracts in Egypt, Saudi Arabia, and UAE.

Financial highlights

• Revenue fell to $8.07 million in H1 2024 from $11.12 million in H1 2023, with B2C and B2B segments down 29% and 27%, respectively.

• Gross profit was $1.74 million, nearly flat year-over-year, as cost of sales dropped to $6.32 million.

• General and administrative expenses rose 96% to $5.45 million, mainly due to a $2.03 million RSU grant to management and higher professional fees.

• Adjusted EBITDA for H1 2024 was $6.17 million, compared to $1.33 million in H1 2023.

• Cash and cash equivalents were $1.18 million at June 30, 2024, down from $2.92 million a year earlier.

Outlook and guidance

• Management expects current cash and recent financing to be sufficient for at least twelve months, with plans to expand in Saudi Arabia, UAE, and the US.

• Focus remains on securing profitable, multi-year B2B contracts and maintaining disciplined cost control.