Sunday 29 November 2020

Agility's Q3 net profit surges 17.4pc

KUWAIT, November 4, 2017

Agility, a leading global logistics provider, has reported a net profit of KD 17.8 million ($58.6 million) for the third quarter of 2017, up 17.4 per cent compared to KD15.2 million ($50.1 million) for the same period last year.

Annoucing the third quarter results, Agility said its ebitda grew 18.3 per cent to KD34.2 million, while the revenue increased 15 per cent to KD358.5 million.

Through the first nine months, earnings were 39.1 fils per share, up 14.2 per cent, and net profit was KD49.2 million, up 13.7 per cent. Ebitda for the first nine months was KD 97.6 million, an increase of 16.5 per cent; revenue was KD1.02 billion, up 11.1 per cent.

The Kuwaiti group pointed out that the results were in line with the company’s long-term guidance.

Third quarter revenue for Agility Global Integrated Logistics (GIL), the company’s core logistics business, grew by 19.4 per cent to KD273 million.

GIL’s commercial strategy is to drive growth by committing to defined solutions and customer segments, improved sales productivity, and development of efficient tradelanes. That strategy has increased revenue across all products and generated growth in all customer segments.

Air and ocean posted revenue increases of more than 20 per cent, as a result of a 16.1 per cent growth in air tonnage and 12 per cent increase in ocean TEUs. Project Logistics also improved revenue by 27.3 per cent.

Net revenue in Q3 increased 2.4 per cent primarily as a result of growth in contract logistics, which has been performing well in the Middle East and Asia Pacific.

This growth is occurring at both new and existing warehousing facilities. Net revenue margins shrunk to 22.6 per cent compared with 26.3 per cent in Q3 2016, because capacity constraints and higher freight market rates adversely affected yields for freight forwarding.  

As a result, Q3 ebitda was almost flat (it grew only by 1.4 per cent) vs the prior year. The ebitda was further affected by foreign exchange rates. Excluding foreign exchange impact, GIL’s ebitda grew 3.4 per cent in Q3.
Agility's vice chairman and CEO Tarek Sultan said: "We remain on track to meet our 2020 ebitda target of $800 million. Agility’s Infrastructure portfolio of companies continue to drive performance, and we are heavily investing in further growing their footprint in emerging markets across the Middle East, Asia and Africa."

According to him, the group's global logistics business has shown double-digit growth in air and ocean tonnage, and contract logistics revenue growth.

“Even so, it’s a tough market because capacity constraints and higher freight forwarding rates continue to affect profitability,” remarked Sultan.

“Looking ahead, we are investing in technology so that we can better serve our customers online, and drive productivity, efficiency, and operational excellence,” he added.-TradeArabia News Service

Tags: logistics | Agility | Kuwait | Net Profit |

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