Agility has reported first quarter earnings of $66 million, or 40 cents per share, an increase of 7.3% from Q1 2018 (Excluding IFRS-16 impact it will be an increase of 10.2%).
First-quarter revenue was $1242 million, and EBITDA was $152 million, increases of 1.9% and 22.8%, respectively.
Said Agility Vice Chairman and CEO Tarek Sultan: “Again a good start for Agility this year, though we are witnessing an environment where growth is slowing.
“We have seen good improvement across the board, and are accelerating our efforts to achieve our targets. On a reported basis, EBITDA increased 22.8% and net profit improved 7.3%.”
Sultan said Agility’s core logistics business, Agility GIL, continues making significant and important investments in digital transformation that will position it for long-term success and differentiation in the market.
He said Agility continues also to invest in its Infrastructure group companies, each of which is pursuing a growth strategy.
Excluding IFRS16 impact, Agility GIL reported Q1 EBITDA of $22.3 million, a 9% decrease compared to the same period a year earlier, the drop is attributable to costs associated with GIL’s digital transformation and commercial investments.
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Agility GIL first-quarter revenue was $902 million, a decrease of 1.1% from $912 million in the same period a year earlier.
Net revenue increased to $214 million, a 1.2% increase over Q1 2018 (excluding the IFRS-16 impact).
The net revenue increase was driven primarily by Ocean Freight and Contract Logistics, offsetting decreases in Project Logistics and Road Freight.
On a constant currency basis, GIL net revenue growth was 5.1%. GIL’s overall Q1 net revenue margin was 23.8% against a 23.3% a year earlier.
Air Freight tonnage grew 5.2% in Q1 2019; 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%. GIL had stable Ocean Freight performance across geographies and sales channels with volume growth primarily from strategic accounts.
Q1 Contract Logistics performance was strong, with revenue growth of 3.6%. The Middle East/Africa region (mainly Kuwait, Dubai, Egypt) was the key driver of growth and improved margins.
GIL’s digital strategy involves the development of systems and technology that will improve productivity, differentiate its products, and position it as the industry’s leading innovator.
By accelerating its digital transformation, GIL will enhance customer and supplier connectivity, create innovative customer solutions, increase the efficiency of its business processes, and enable comprehensive business insight.
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