Agility’s Financial Results for First Quarter 2018
||Q1 2018 (Million KD)
| Net Profit
Figures in the table above have been rounded
Dubai, United Arab Emirates, May 8, 2018: Agility, a leading global logistics provider, today announced its Q1 2018 financial results, reporting a net profit of KD 18.9 million, or 15.2 fils per share, an increase of 29.8% over Q1 2017.
Revenue for the quarter reached KD 371.8 million and EBITDA was KD 37.7 million.
“Agility continues to deliver results. Our double-digit EBITDA growth affirms the company’s momentum over the past three years.
GIL continues to drive profitability gains through strong performance in Ocean and Air Freight, in addition to improving its efficiency.
Companies in the Infrastructure group posted healthy gains and are delivering consistent with their road map.” said Tarek Sultan, Agility CEO and Vice Chairman.
Agility Global Integrated Logistics
In Q1 2018, Global Integrated Logistics (GIL) gross revenue grew 15.7% to KD 278.1 million.
Air freight revenue increased 22.1%, driven by strong volume growth (4.8% increase in air tonnage) and ocean freight revenue grew 14% as a result of an 11.5% increase in TEUs.
Contract Logistics revenue increased 15.1% and road freight showed 8.4% revenue improvement in Q1 2018.
GIL’s Q1 net revenue (NR) rose 7.9% from the same period in 2017, primarily due to growth in freight forwarding and Contract Logistics.
Air NR grew by 18.7% due to improving yields, and Ocean NR increased 7.1%. Contract Logistics NR increased by 5.8%. However, GIL’s NR margin was 23.3%, down from 24.9% during the same period a year earlier due to yield pressure in Road freight and Project Logistics. Regionally, Air freight and Ocean freight performed well in Asia Pacific, Europe and the Americas.
Contract Logistics continued its solid growth, primarily in Middle East and Asia Pacific, as a result of effective utilization of facilities.
Q1 EBITDA reached KD 7.4 million with margin expanding to 2.7%, compared with 2.4% in Q1 2017.
GIL continues to drive performance through its “Focus and Capability” strategy, which focuses on driving growth by committing to defined solutions, customer segments, sales productivity and efficient trade lane development.
In addition, GIL is driving its technology-based transformation by building systems and solutions that enable business insight, efficiencies, and productivity for customers and operations. Further, it is developing tools to better serve customers online.
Commenting on that Sultan said “We recently launched Shipa Freight, an online freight service aimed at a market with massive potential: the small and medium-size companies that account for most of the world’s businesses.
Shipa Freight lets them get rate quotes and book, pay and track, ocean and air shipments around the world, all online in a matter of seconds.”
Agility’s Infrastructure Companies
First quarter revenue for the Infrastructure group grew 20.7%, and EBITDA increased 24.6% to KD 34.1 million as margins expanded from 33.5% to 34.6%. Agility continues to invest in those companies to drive its future growth.
Agility Industrial Real Estate (RED) continues to improve the efficiency of its Kuwaiti assets by offering a range of warehousing services to its customers.
RED will soon deliver the first 80k sqm warehouses in Riyadh. In Africa, Agility is growing its existing operations and identifying new locations to develop new logistics parks.
Tristar, a fully integrated liquid logistics company, won new turnkey contracts in Q1. Tristar continues to invest and diversify its operations by expanding in shipping and broadening its geographic reach.
National Aviation Services (NAS) operations posted good growth in the first quarter.
Contributing to its growth were the successful launch of operations in Uganda and significant improvement in Cote d’Ivoire and Afghanistan.
NAS was also able to improve its business performance in Morocco and Tanzania, with the latter expecting a very good year and turnaround in 2018.
UPAC, a leading real estate and facilities management company in the Middle East, continues to improve the operational efficiencies of key operations in Kuwait. UPAC is developing the 450-store Reem Mall in Abu Dhabi in partnership with National Real Estate Company (NREC).
GCS, a company specialized in customs modernization, showed improved performance in the first quarter.
GCS manages all customs’ activities at ports of Kuwait and aims to enhance customs modernization through its services.
Financial Performance for Q1 2018
- Agility’s net profit was KD 18.9 million, a 29.8% increase from KD 14.6 million in the same period 2017. EPS was 15.2 fils, compared with 11.6 fils a year earlier.
- EBITDA was KD 37.7 million, a 22.6% increase from Q1 2017.
- Agility’s revenue for this quarter was KD 371.8 million, an increase of 16% from KD 320.5 million in Q1 2017. Net revenue increased by 12.5%.
- GIL’s revenue was KD 278.1 million, a 15.7% increase from Q1 2017.
- Infrastructure group revenue was KD 98.8 million compared with KD 81.8 million in Q1 2017, a 20.7% increase.
- Agility enjoys a healthy balance sheet with KD 1.8 billion in assets. Its net debt position was KD 83.5 million as of March 31, 2018. Operating cash flow was KD 29.2 million for this quarter.
“Agility is accelerating a fast-moving transformation to establish itself as a digital leader in the logistics industry,” Sultan said.
“We are rapidly introducing new digital products, aggressively piloting and pioneering new logistics models and technologies, and re-engineering our systems for speed and competitive advantage.
We want to identify technology that makes logistics more efficient and lowers costs for customers.”