Agility, a leading global logistics provider, has reported third-quarter earnings of 13.8 fils per share on net profit of KD20 million, an increase of 12.3% over the same period in 2017.
Agility EBITDA grew 14.8% to KD39.2 million. Revenue increased 10% to KD 394.4 million.
For the first nine months of the year, earnings rose to 40.7 fils per share and net profit increased 19.7% to KD58.9 million.
EBITDA was KD114 million, an increase of 16.9%. Revenue for this period was KD1,150.4 million, an increase of 12.7%.
Tarek Sultan, Agility CEO and Vice Chairman said: “Our third-quarter results build on the momentum Agility has achieved throughout 2018.
“We have seen double-digit EBITDA growth in our logistics business and across our portfolio of subsidiary companies.
“The company’s investments in technology and emerging markets infrastructure are paying off with better productivity, a growing customer base, and a diversified service and geographical offering.
“The company continues to track towards its goal of $800 million EBITDA by 2020 and its objective of becoming the digital leader in the logistics industry.”
Agility Global Integrated Logistics (GIL) continues to successfully implement a strategy based on trade lane development, flexible and agile customer solutions and productivity optimization.
GIL gross revenue rose to KD 292.2 million, an increase of 7% vs. Q3 2017. Net revenue grew 5.1%, reaching KD 64.8 million.
The net revenue increase was driven mainly by Air Freight (up 15.6%) and Contract Logistics (up 6.4%).
Strong Air Freight performance was driven by increases in both tonnage and yield growth. In Q3 2018, air tonnage increased 11.4% vs. Q3 2017. Air Freight grew across multiple trade lanes and customer segments.
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Ocean Freight net revenue grew 4.2%, mostly on volume growth despite slight yield compression. Volume increased 6.7% over the same period a year earlier.
Ocean Freight growth was primarily driven by Americas and the Middle East.
GIL continues to invest in its Contract Logistics portfolio, especially in Asia Pacific and the Middle East. Contract Logistics generated a gross revenue increase of 7.7% in Q3.
GIL posted net revenue margins of 22.2% in Q3 vs. 22.6% in Q3 2017.
GIL’s third-quarter EBITDA was KD 7.8 million, a 26% increase over the same period a year earlier. EBITDA margins improved to 2.7% up from 2.3%. Through the first three quarters of 2018, GIL EBITDA is up 17% year-on-year.
The sources of GIL’s continued near-term growth remain its ability to use digital technology and data to enhance its productivity and develop insights and answers for customers needing solutions and better connectivity. GIL remains focused on core drivers of its profitability.
Agility’s Infrastructure group EBITDA rose 17.1% to KD 34.4 million in Q3. Revenue grew 16.1% to KD 105.6 million.
Agility Logistics Parks (ALP), previously Industrial Real Estate, reported 4.8% revenue growth in the third quarter, despite challenging market conditions.
In Kuwait, ALP’s focus is driving the efficiency of the existing assets. In Riyadh, ALP has started delivering warehousing space and is on track with the development of the second phase of its logistics park, which will deliver an additional 120k sqm capacity.
ALP development in Africa is proceeding well. In addition to Ghana operations, facilities in Mozambique, Nigeria and Cote d’Ivoire are expected to become operational in 2019.
Tristar continues to look for new opportunities. It is diversifying operations and broadening its geographic reach.
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