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Agility reports $65m net profit in Q3

KUWAIT, November 11, 2018

Agility, a leading global logistics provider, reported third-quarter earnings of 13.8 fils per share on net profit of KD20 million ($65.7 million), an increase of 12.3 per cent over the same period in 2017.

Agility EBITDA grew 14.8 per cent to KD39.2 million ($128.9 million). Revenue increased 10 per cent to KD394.4 million ($1.297 billion), said a statement from the company.

For the first nine months of the year, earnings rose to 40.7 fils per share and net profit increased 19.7 per cent to KD58.9 million ($193.71 million). EBITDA was KD114 million ($374.93 million), an increase of 16.9 per cent. Revenue for this period was KD1.150 billion ($3.78 billion), an increase of 12.7 per cent, it said.

Tarek Abdulaziz Sultan, vice chairman and CEO, Agility, said: “Our third-quarter results build on the momentum our company has achieved throughout the year.”

“We have seen double-digit EBITDA growth in our logistics business and across our portfolio of subsidiary companies. The company’s investments in technology and emerging markets infrastructure are paying off with better productivity, a growing customer base, and a diversified service and geographical offering,” he said.

“The company continues to track towards its goal of $800million EBITDA by 2020 and its objective of becoming the digital leader in the logistics industry,” he added.

GIL continues to successfully implement a strategy based on trade lane development, flexible and agile customer solutions and productivity optimisation.

GIL gross revenue rose to KD292.2 million ($961.03 million), an increase of 7 per cent vs Q3 2017.  Net revenue grew 5.1 per cent, reaching KD64.8 million ($213.12 million). The net revenue increase was driven mainly by Air Freight (up 15.6 per cent) and Contract Logistics (up 6.4 per cent).

Strong Air Freight performance was driven by increases in both tonnage and yield growth. In Q3 2018, air tonnage increased 11.4 per cent vs Q3 2017. Air Freight grew across multiple trade lanes and customer segments.

Ocean Freight net revenue grew 4.2 per cent, mostly on volume growth despite slight yield compression. Volume increased 6.7 per cent over the same period a year earlier. Ocean Freight growth was primarily driven by Americas and the Middle East.

GIL continues to invest in its Contract Logistics portfolio, especially in Asia Pacific and the Middle East. Contract Logistics generated a gross revenue increase of 7.7 per cent in Q3.

GIL posted net revenue margins of 22.2 per cent in Q3 vs 22.6 per cent in Q3 2017.

GIL’s third-quarter EBITDA was KD7.8 million ($25.6 million), a 26 per cent increase over the same period a year earlier. EBITDA margins improved to 2.7 per cent up from 2.3 per cent. Through the first three quarters of 2018, GIL EBITDA is up 17 per cent year-on-year.

The sources of GIL’s continued near-term growth remain its ability to use digital technology and data to enhance its productivity and develop insights and answers for customers needing solutions and better connectivity. GIL remains focused on core drivers of its profitability.    
Agility’s Infrastructure group EBITDA rose 17.1 per cent to KD34.4 million ($113.14 million) in Q3. Revenue grew 16.1 per cent to KD105.6 million ($347.31 million). For the first three quarters, EBITDA grew 34.6 per cent and revenue increased 15.3 per cent. All entities in the group contributed to this performance.

Agility Logistics Parks (ALP), previously Industrial Real Estate, reported 4.8 per cent revenue growth in the third quarter, despite challenging market conditions. In Kuwait, ALP’s focus is driving the efficiency of the existing assets. In Riyadh, ALP has started delivering warehousing space and is on track with the development of the second phase of its logistics park, which will deliver an additional 120,000 sq m capacity. ALP development in Africa is proceeding well. In addition to Ghana operations, facilities in Mozambique, Nigeria and Cote d’Ivoire are expected to become operational in 2019.

Tristar continues to look for new opportunities. It is diversifying operations and broadening its geographic reach.

NAS’s performance in Kuwait was a bit challenging this quarter, however, operations outside Kuwait performed better in Q3 than a year earlier. NAS Afghanistan performance was better than last year due to an increase in the number of flights coupled with stringent cost control. NAS Cote d’Ivoire experienced a slight growth in profitability; Morocco and Tanzania also significantly improved their performance in Q3. NAS also expanded operations into Uganda, which added to its EBITDA.

GCS, Agility’s customs modernisation company, reported healthy Q3 growth as he result of improved efficiency and efforts to optimise service offerings.

UPAC’s net profits increased in Q3. Operations at Kuwait Airport and other prominent locations in Kuwait continue to be the main contributor to UPAC’s financial performance. Construction of Reem Mall in Abu Dhabi is moving forward according to plan, it stated. – TradeArabia News Service

Tags: | Agility | Net Profit | Q3 |

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