Georgian Railway’s revenue rose to GEL 490 million, but net profit declined by 26%, highlighting the financial challenges impacting the company due to increased costs and exchange rate losses. This was reported by the railway transport news portal Railway Supply.

Georgian Railway
Photo, source: bm.ge

In the first nine months of 2024, Georgian Railway reported an increase in revenue and a decrease in net profit. Revenue rose by 2% to GEL 490 million, while net profit fell by 26% to GEL 75.4 million. This decline in profit is primarily due to an exchange rate loss of GEL 17 million, affecting overall financial performance.

Cape Town Advocates for Control of Passenger Rail to Benefit Local Communities

The company’s report details various expenses, including GEL 171.7 million allocated for employee salaries, covering 12,000 employees. Additionally, Georgian Railway incurred GEL 48 million in depreciation and amortization costs.

Georgian Railway Revenue Growth and Net Profit Decline in 2024

Operating costs, such as electricity, fuel, and consumables, amounted to GEL 63 million, with other expenses totaling GEL 108 million. These figures reflect the broader financial challenges that the company faces in managing rising operational expenses.

Georgian Railway’s assets are valued at GEL 2.6 billion, while its liabilities reach GEL 1.64 billion, showing a significant debt load alongside operational costs. This imbalance between rising revenue and declining net profit underscores ongoing financial pressures.

Despite revenue growth, the profit decline illustrates the impact of higher costs on Georgian Railway’s financial stability. With increases in employee-related and operational expenses, the company faces significant budgetary demands, underscoring the impact of economic conditions.

Georgian Railway is actively working to address these financial challenges, seeking solutions that could stabilize its financial outlook in a demanding economic environment.

Photo, source: bm.ge

News on railway transport, industry, and railway technologies from Railway Supply that you might have missed:

Rail Grants Empower Local Communities with Funding for Positive Change

Find the latest news of the railway industry in Eastern Europe, the former Soviet Union and the rest of the world on our page on Facebook, Twitter, LinkedIn, read Railway Supply magazine online.

Place your ads on webportal and in Railway Supply magazine. Detailed information is in Railway Supply media kit