Agility quarterly profits up 7.3pc to US$66.7 million. revenues rise 1.9pc
KUWAITI global logistics giant Agility posted a first quarter 7
KUWAITI global logistics giant Agility posted a first quarter 7.3 per cent year-on-year net profit increase to KWD20.3 million (US$66.7 million), drawn on revenue of KWD378.8 million, up 1.9 per cent.
Quarterly pre-tax operating profit - EBITDA - increased 22.8 per cent year on year to KWD46.3 million, the company said.
'We have seen good improvement across the board, and are accelerating our efforts to achieve our targets,' said Agility CEO Tarek Sultan.
Agility GIL (Global Integrated Logistics), he said, continues making significant and important investments in digital transformation that will position it for long-term success and differentiation in the market.
Air freight tonnage grew 5.2 per cent in Q1; air freight grew across multiple trade lanes and sales channels with very strong performance from strategic customers.
Ocean freight net revenue performance was driven primarily by yield improvement and TEU growth of 2.3 per cent. GIL had stable ocean freight performance across geographies and sales channels with volume growth primarily from strategic accounts.
Contract logistics performance was strong, with revenue growth of 3.6 per cent. The Middle East/Africa region (mainly Kuwait, Dubai, Egypt) was the key driver of growth and improved margins.
The infrastructure group reported EBITDA of KWD32.5 million (excluding International Financial Reporting Standard 16 impact), an increase of 7.4 per cent in Q1, on a revenue increase of 10.7 per cent. Agility is investing in these companies to drive its future growth.
Agility logistics parks (ALP) reported 23 per cent revenue growth for the quarter, an increase that resulted from strong performance at new facilities completed in late 2018, as well as yield improvement at existing facilities.
In Kuwait, ALP's focus is driving the efficiency of existing assets and identifying new opportunities based on market demand. ALP expects to deliver 150,000-square metres of warehousing space this year, mainly in Saudi Arabia and Africa.
It expects to begin construction of another 275,000-square metres of warehousing space to be delivered in 2020/21. With respect to Africa, ALP is currently developing 68,000-square metres of new facilities in Ghana, Mozambique and Ivory Coast, with another 36,000-square metres opening in Nigeria at the end of the year and a planned further 100,000-square metres opening during 2020.