Swvl Holdings Corp. (NASDAQ: SWVL) shares experienced a notable surge on the US stock charts during the last trading session, marking an impressive 37.36% increase to conclude regular trading at $1.32. The surge in SWVL stock price followed the release of the company’s financial results.
Swvl Holdings (SWVL) marked a noteworthy achievement in its financial results for the initial half of the fiscal year 2023. The company successfully generated favorable operational cash flow and net earnings, highlighting the effective implementation of the portfolio optimization initiative launched in the prior year.
This success was attained amid the prevailing global economic and capital markets landscape during that period. Swvl remains steadfast in its dedication to maintaining and enhancing profitability, concurrently engaging in strategic expansions into promising markets.
SWVL documented operating cash inflow coming in of $2.2 million during the first half of 2023, a notable improvement from the $76.8 million cash outflow during the same period in 2022. The gross profit held steady at $1.8 million in H1 2023, a positive turn from the gross loss of $2.7 million in H1 2022. Impressively, the company achieved a net profit of $2.1 million for the specified timeframe, a significant improvement to the net loss of $161.6 million recorded in H1 2022.
Despite the prevailing macroeconomic downturn, SWVL effectively navigated this transformation within a short span of a few months, attaining all the objectives outlined in its portfolio optimization strategy. The company is now generating substantial value for its shareholders and is well-positioned for profitable growth and expanded operations in high-revenue markets.
After June 30, 2023, Swvl continued to fortify its financial standing by completing an all-cash sale of one of its subsidiaries, Urbvan, representing approximately 7% of Swvl’s IFRS revenues as of December 31, 2022. This transaction yielded gross proceeds of $12 million, following the earlier acquisition of the business in an all-share deal.
Swvl remains resolute in its commitment to sustaining this positive momentum, further fortifying its financial position, and consistently delivering enhanced value to its stakeholders within the evolving landscape of mobility.
