Agility's Q3 air cargo volume drop 15.8pc due to 'challenging market conditions'
KUWAIT-BASED logistics and infrastructure company Agility reported that overall third quarter revenue rose by 1
KUWAIT-BASED logistics and infrastructure company Agility reported that overall third quarter revenue rose by 1.6 per cent year on year KWD400.7 million (US$1.32 billion) despite net air freight revenue declining by 2.8 per cent.
Tonnage was down 15.8 per cent 'as a result of trade concerns and lower demand from customers across industries and geographies'. However, the contraction was partially offset by higher yields - expressed as net revenue/tonne - which rose by 15.5 per cent, reported London's Air Cargo News.
'Our Infrastructure portfolio of companies drove our results in the third quarter, with all major entities seeing growth,' said Agility chief executive Tarek Sultan. 'Our Global Integrated Logistics (GIL) business, on the other hand, was affected by challenging market conditions and trade war headwinds that have affected the industry as a whole.'
GIL earnings before interest, tax, depreciation and amortisation (EBITDA) in the third quarter amounted to KWD7.8 million, down one per cent year on year. The company attributed the decline to higher operating expenses related to new facilities, as well as investments in digital transformation.
Mr Sultan said: 'We continue to invest in technology-driven change and seek to be the digital leaders in our industry. Our Agility Ventures team is partnering with innovative start-ups that are re-shaping the supply chain in areas ranging from green technologies to e-commerce.
'We are also accelerating in-house development, acquisitions and partnerships to grow our digital logistics platform, Shipa. We believe this is the key to differentiating Agility and positioning us for future growth.'
Year-to-date net profit rose by 7.9 per cent compared to the same period last year to KWD63.6 million. Year-to-date EBITDA was KWD142.4 million, up 24.9 per cent on revenue of KWD1,175.8 million, an increase of 2.2 per cent.