|9 months 2018
|9 months 2017
KUWAIT – November 8, 2018 – Agility, a leading global logistics provider, today reported third-quarter earnings of 13.8 fils per share on net profit of KD 20 million, an increase of 12.3% over the same period in 2017. Agility EBITDA grew 14.8% to KD 39.2 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 KD 58.9 million. EBITDA was KD 114 million, an increase of 16.9%. Revenue for this period was KD 1,150.4 million, an increase of 12.7%.
“Our third-quarter results build on the momentum Agility has achieved throughout 2018,” said Tarek Sultan, Agility CEO and Vice Chairman. “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)
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.
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 Companies
Agility’s Infrastructure group EBITDA rose 17.1% to KD 34.4 million in Q3. Revenue grew 16.1% to KD 105.6 million. For the first three quarters, EBITDA grew 34.6% and revenue increased 15.3%. All entities in the group contributed to this performance.
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.
NAS’s performance in Kuwait was a bit challenging this quarter, however, operations outside Kuwait performed better in Q3 than a year earlier. NAS Afghanistan performance was better than last year due to an increase in the number of flights coupled with stringent cost control. NAS Cote d’Ivoire experienced a slight growth in profitability; Morocco and Tanzania also significantly improved their performance in Q3. NAS also expanded operations into Uganda, which added to its EBITDA.
GCS, Agility’s customs modernization company, reported healthy Q3 growth as he result of improved efficiency and efforts to optimize service offerings.
UPAC’s net profits increased in Q3. Operations at Kuwait Airport and other prominent locations in Kuwait continue to be the main contributor to UPAC’s financial performance. Construction of Reem Mall in Abu Dhabi is moving forward according to plan.
Recap of Agility Q3 Financial Performance
- Agility’s net profit increased 12.3% to KD 20 million in Q3 2018. EPS was 13.8 fils vs. 12.3 fils a year earlier.
- Agility’s Q3 EBITDA increased 14.8% to KD 39.2 million.
- Agility’s Q3 revenue rose 10%, to KD 394.4 million and net revenue increased by 8.4%.
- GIL Q3 revenue grew by 7% to KD 292.2 million.
- Infrastructure’s Q3 revenue grew 16.1% to KD 105.6 million.
- Agility enjoys a healthy balance sheet with KD 1.8 billion in assets. Net debt position was KD 138.4 million as of September 30, 2018. Operating cash flow was KD 55.3 million for the first nine months of 2018.
Agility is a global logistics company with $4.6 billion in annual revenue and 22,000+ employees in more than 100 countries. It is one of the world’s top freight forwarding and contract logistics providers, and a leader and investor in technology to enhance supply chain efficiency. Agility is a pioneer in emerging markets and one of the largest private owners and developers of warehousing and light industrial parks in the Middle East, Africa and Asia. Agility’s subsidiary companies offer fuel logistics, airport services, commercial real estate and facilities management, customs digitization, and remote infrastructure services.
For more information about Agility, visit www.agility.com