Georgian Railway’s revenue posted a slight 0.8% y/y decline to US$ 116.8mn in 1H24, primarily due to reduced revenues in freight traffic, logistic services and passenger transport. In 1H24, the Georgian Railway transported 6.8mn tons of cargo, with a 2.6% y/y increase. This growth was driven by a 4.1% y/y rise in liquid cargo volumes, reaching 2.5mn tons, and a 1.7% y/y increase in dry cargo volumes, totaling 4.3mn tons.
Operating expense reductions contributed to a 14.5% y/y rise in Adjusted EBITDA, reaching US$ 40.0mn in 1H24. As a result, the Adjusted EBITDA margin strengthened to 34.2% from 29.7% in 1H23. However, net profit plummeted by 97.6% y/y to US$ 0.8mn, mainly due to FX losses stemming from the GEL depreciation, impacting the company’s US$-denominated Eurobond. Consequently, the net profit margin declined to 0.7% in 1H24 from 28.3% in 1H23.
