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Kuwait Agility's 2018 net profit surges 18.4pc to $266m

KUWAIT CITY, February 16, 2019

Kuwait-based Agility, a leading global logistics provider, has reported a 2018 net profit of KD81.1 million ($266 million), or 56.06 fils per share, thus registering an increase of 18.4 per cent from the previous year. 
 
Announcing the result for the year till December 31, Agility said its revenue for the year surged to KD1.55 billion, and ebitda was put at KD154.8 million, thus registering increases of 10.2 per cent and 14.5 per cent, respectively.
 
For the fourth quarter 2018, Agility reported a net profit of KD22.2 million, or 15.35 fils per share, an increase of 15.1 per cent over Q4 2017. The ebitda for Q4 2018 was KD40.8 million, an increase of 8.4 per cent.
 
Impressed with the results, Agility’s board of directors has recommended a cash dividend distribution of 15 per cent (15 fils per share), along with 15 per cent bonus shares (15 shares for every 100 shares), subject to approval of the General Assembly. 
 
On the solid performance, Agility Vice Chairman and CEO Tarek Sultan said: "Agility has improved profitability for shareholders for 10 consecutive quarters. In 2018, the company had posted double-digit ebitda growth for the third year in a row."
 
Sultan said the company continues to invest in its future by building more than 1 million sq m of new warehousing and industrial facilities across the Middle East and Africa; building, through one its subsidiaries, the $1.2 billion Reem Mall mega project in Abu Dhabi; and investing more than $100 million in Shipa, its digital logistics platform. 
 
Cash flow from operations has been healthy and growing, while free cash flow has been limited as a result of capital expenditure that led to increased borrowing to fund strategic investments. 
 
Agility’s dividend recommendation reflects its desire to reward shareholders without inhibiting future business growth, he stated.
 
Sultan pointed out that Agility remained committed to achieving its target of $800 million ebitda. However, the timeline may be stretched beyond 2020. 
 
Agility will be exploring different avenues for unlocking and maximizing value for our shareholders, including investments, acquisitions, and public offerings of certain businesses in its portfolio, he stated.
 
Agility Global Integrated Logistics (GIL) revenue grew 8.6 per cent to KD1.15 billion in 2018,  driven by strong growth across core products. 
 
Net revenue also grew by 4.9 per cent year-over-year, with 22.9 per cent net revenue margins, as a result of better air freight yields and stable ocean freight yields. 
 
Full year ebitda rose 6.3 per cent to KD35.9 million, attributable to strength in freight forwarding and contract logistics, consistent execution of GIL’s commercial strategy, and management’s focus on efficiency.-TradeArabia News Service



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