Agility Reports Earnings Increase

Agility, a leading global logistics provider, today reported second-quarter earnings of 12.99 fils per share on net profit of KD 21.6 million, an increase of 8.1% over the same period in 2018. Q2 EBITDA grew 31.2% to KD 48.6 million, and revenue increased 3.2% to KD 396.3 million.

First-half earnings of 25.18 fils per share and net profit of KD 41.9 million were up 7.7%. First-half EBITDA was KD 95 million, an increase of 27%. Revenue for the first half was KD 775 million, an increase of 2.5%. 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 achieved EBITDA growth of 7% (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 KD 15.9 million, or KD 10 million excluding IFRS 16 vs. KD 9.3 million in Q2 2018.

GIL Q2 gross revenue fell 2.6% to KD 281.9 million, mainly due to currency fluctuations. On a constant-currency basis, GIL revenue grew 1%. Net revenue increased 4% to KD 69.4 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% as the result of lower job volume and tonnage, although the decrease was offset in part by higher yields. Q2 2019 tonnage fell 8% 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% drop in TEUs. Ocean Freight performance was strongest in the Americas and Asia Pacific. Contract Logistics growth continued in Q2 with gross revenue of KD 32.8 million, a 1% 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% in Q2, up from 23% a year earlier. During the first half of 2019, GIL EBITDA improved 69.5% 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% on a reported basis (or increased 2.1% on a constant-currency basis). GIL net revenue improved 3.1% 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.