Kuwait-based Agility, a leading global logistics provider, has posted a net profit of KD21.6 million ($70.8 million) for the second quarter (Q2) of the year, an increase of 8.1 per cent over the same period in 2018.
Q2 EBITDA grew 31.2 per cent to KD48.6 million, and revenue increased 3.2 per cent to KD396.3 million.
First-half earnings of25.18fils per share and net profit of KD41.9 million were up 7.7 per cent. First-half EBITDA was KD95 million, an increase of 27 per cent. Revenue for the first half was KD775 million, an increase of 2.5 per cent.
Tarek Sultan, Agility vice chairman and CEO, said: “We had a good Q2 despite the tough environment we operate in. GIL reported very good results and continues to implement its strategy to drive operational efficiency. Agility’s Infrastructure companies performed well, and key initiatives in each business unit are moving ahead according to plan.”
Agility Global Integrated Logistics (GIL)
Global Integrated Logistics achieved EBITDA growth of 7 per cent (excluding IFRS 16 impact) despite higher operating expenses related to new facilities and higher staff costs for operations and commercial requirements. GIL’s Q2 reported EBITDA was KD15.9 million, or KD10 million excluding IFRS 16 vs. KD9.3 million in Q2 2018.
GIL Q2gross revenue fell 2.6 per cent to KD281.9 million, mainly due to currency fluctuations. On a constant-currency basis, GIL revenue grew 1 per cent.Net revenue increased 4 per cent to KD69.4 million, mainly as a result of better Ocean Freight and Contract Logistics performance.
The global air freight market continued to be under pressure. GIL Air Freight net revenue decreased 1.8 per cent as the result of lower job volume and tonnage, although the decrease was offset in part by higher yields. Q2 2019 tonnage fell 8 per cent vs. Q2 2018. The decrease was the result of weak market conditions and lower demand across industries and geographies, along with a return to more normal volumes following a spike in high-volume shipments a year earlier. The Air Freight market was affected by volume declines and shifts that have resulted from US-China tariffs and import restrictions.
Strong Ocean Freight performance was driven primarily by yield improvement, despite a 2 per cent drop in TEUs. Ocean Freight performance was strongest in the Americas and Asia Pacific.
Contract Logistics growth continued in Q2 with gross revenue of KD32.8 million, a 1 per cent increase from the same period in 2018.The Middle East-Africa region, notably the Kuwait and Egypt markets, was the key driver of growth and improved margins.
Net revenue margins for GIL improved to 24.6 per cent in Q2, up from 23 per cent a year earlier.
During the first half of 2019, GIL EBITDA improved 69.5 per cent on a reported basis, taking into account the impact of IFRS 16 (it remained at the same level after excluding the IFRS 16 impact). Revenue decreased 1.9 per cent on a reported basis (or increased 2.1 per cent on a constant-currency basis). GIL net revenue improved 3.1 per cent in the first half.
GIL is focusing on accelerating the roll-out of its global operating platform, as part of a broader digital transformation strategy that is intended to drive improved customer experience, more effective supplier management, enhanced business efficiency and productivity, and better data for decision-making.
Agility’s Infrastructure Companies
Agility’s Infrastructure group EBITDA rose 18.2 per cent to KD32.8 million in the second quarter. Revenue grew21.2 per cent to KD118.2 million. First-half EBITDA grew 14.7 per cent, and revenue increased15 per cent. All entities in the group contributed to this performance.
Agility Logistics Parks (ALP) reported 15 per cent revenue growth for the quarter. Revenue from facilities completed in late 2018 contributed to this growth, as did yield improvement at existing facilities. In Kuwait, ALP is looking to develop new facilities that optimize the use of its existing land bank.
In Saudi Arabia, ALP has completed the development of two of the three warehouses it is building in 2019, each with 40k SQM capacity. ALP Saudi Arabia is now moving ahead with the development of the third warehouse. In Africa, ALP projects are progressing well. New warehousing space at the ALP in Ghana will be delivered soon. More space in other locations will be added towards the end of 2019. – TradeArabia News Service
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