Agility reports $228mn net profit in 2017
Agility reported a net profit of KWD68.5MN for 2017, as against KWD59.1MN in the previous year, marking an increase of 16%. Revenue for the year reached KWD1.4BN and EBITDA was KWD135.2MN.
For the fourth quarter (Q4) 2017, Agility reported a net profit of KWD19.3MN, or 15.3 fils per share, an increase of 22.5% over Q4 2016. EBITDA for Q4 2017 was KWD37.6MN, an increase of 19.8%.
Tarek Sultan, Agility CEO and vice chairman, said: “In 2017, Agility posted another year of healthy growth and continued to plant the seeds for a future of sustainable growth. To reach our target of $800mn EBITDA by 2020, we remained focused on improving GIL’S performance and investing in our infrastructure companies. For every business in the group, 2017 was a critical year.”
Agility Global Integrated Logistics (GIL) revenue grew 14.3% to KWD1.06BN in 2017. The increase is attributable to growth in the freight forwarding business and contract logistics. Full year net revenue grew 2.6%. Net revenue margins shrunk to 23.7% from 26.4% amid yield pressure across the industry.
In Q4, GIL revenue was KWD293MN, a 21.5% increase over Q4 2016. Air and ocean revenue were up 25% on air tonnage growth of 9.7% and a 12% increase in ocean TEUS. Contract logistics and specialties (Project Logistics and Fairs & Events) improved revenue 17.6% over the same period in 2016.
Fourth-quarter net revenue increased 6%, but net revenue margins declined to 22.6% vs. 26% in Q4 2016, amid yield pressure throughout the freight forwarding industry. Contract logistics continued its strong growth in Q4, primarily in the Middle East and Asia Pacific, aided by a combination of new customers and investments in new facilities.