Agility reports 12% Q3 earnings rise
KUWAIT: Agility, a leading global logistics provider, yesterday reported third-quarter earnings of 13.8 fils per share on net profit of KD 20 million, an increase of 12.3 percent over the same period in 2017. Agility EBITDA grew 14.8 percent to KD 39.2 million. Revenue increased 10 percent to KD 394.4 million.
For the first nine months of the year, earnings rose to 40.7fils per share and net profit increased 19.7 percent to KD 58.9 million. EBITDA was KD 114 million, an increase of 16.9 percent. Revenue for this period was KD 1,150.4 million, an increase of 12.7 percent.
“Our third-quarter results build on the momentum Agility has achieved throughout 2018” Said Tarek Sultan, Agility Vice chairman and CEO. “We have seen doubledigit 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. The company continues to track towards its goal of $800 million EBITDA by 2020 and its objective of becoming the digital leader in the logistics industry.”
Agility Global Integrated Logistics (GIL)
GIL continues to successfully implement a strategy based on tradelane development, flexible and agile customer solutions and productivity optimization. GIL gross revenue rose to KD 292.2 million, an increase of 7 percent vs. Q3 2017. Net revenue grew 5.1 percent, reaching KD 64.8 million. The net revenue increase was driven mainly by Air Freight (up 15.6 percent) and Contract Logistics (up 6.4 percent).
Strong Air Freight performance was driven by increases in both tonnage and yield growth. In Q3 2018, air tonnage increased 11.4 percent vs. Q3 2017. Air Freight grew across multiple trade lanes and customer segments. Ocean Freight net revenue grew 4.2 percent, mostly on volume growth despite slight yield compression. Volume increased 6.7 percent 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 percent in Q3.
GIL posted net revenue margins of 22.2 percent in Q3 vs. 22.6 percent in Q3 2017.
GIL’s third-quarter EBITDA was KD 7.8 million, a 26 percent increase over the same period a year earlier. EBITDA margins improved to 2.7 percent up from 2.3 percent. Through the first three quarters of 2018,GIL EBITDA is up 17 percent 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 companies Agility’s Infrastructure group EBITDA rose 17.1 percent to KD 34.4 million in Q3. Revenue grew 16.1 percent to KD 105.6 million. For the first three quarters, EBITDA grew 34.6 percent and revenue increased 15.3 percent. All entities in the group contributed to this performance.
Agility Logistics Parks (ALP), previously Industrial Real Estate, reported 4.8 percent 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 120k sqm 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 modernization company, reported healthy Q3 growth as he result of improved efficiency and efforts to optimize 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.