Agility reports 19% increase in Q2 earnings
August 7, 2018: Agility has reported second-quarter earnings of 13.8 fils per share on net profit of KD 20 million, an increase of 18.7 percent over the same period in 2017. Agility EBITDA grew 13.6 percent to KD 37.1 million. Revenue increased 12.3 percent to KD 384.2 million.
First-half earnings of 26.9 fils per share and net profit of KD 38.9 million were up 24 percent. First-half EBITDA was KD 74.8 million, an increase of 18 percent. Revenue for the first half was KD 756 million, an increase of 14.1 percent.
Tarek Sultan, Agility vice chairman and CEO, said, “Our second quarter results were in line with expectations and consistent with the previous growth trend the company has been seeing. Agility’s infrastructure companies performed well, as did our logistics business, which witnessed another quarter of volume and revenue growth despite margin pressure.”
Global Integrated Logistics (GIL) business strategy of effective trade lanes development, productivity optimisation and defined tailor-made solutions to customers continued to generate favourable results. GIL gross revenue grew 13.4 percent to KD 289.3 million. Net revenue rose 5 percent to KD 66.7 million, primarily due to growth in Freight Forwarding and Contract Logistics. The respective revenue and net revenue growth rates for the first half were 14.5 percent to KD 567.4 million and 6.4 percent to KD 131.3 million.
Air freight continued its strong performance in Q2, driven by solid volume growth of 14 percent and stable yields compared to the same period of last year. Air freight net revenue grew 21.9 percent in Q2 and 20.3 percent in the first half. Ocean freight had consistent volume growth but with lower yields. In Q2, container volume increased 8.2 percent vs. Q2 2017. Ocean freight net revenue grew 7.4 percent in Q2 and 7.3 percent in the first half.
Regionally, Air freight and Ocean freight performance was strongest in the Americas, Asia Pacific and Europe.
Contract Logistics continued its steady growth, primarily in the Middle East and Asia Pacific, as a result of new business and effective utilisation of facilities. Contract logistics net revenue grew 3.2 percent in Q2 and 4.5 percent in the first half.
GIL's net revenue margin was 23 percent in Q2, down from 24.9 percent a year earlier due to yield degradation in Road freight and Project Logistics, primarily in the Middle East and Europe. GIL’s EBITDA reached KD 9.3 million in Q2, and its EBITDA margin was 3.2 percent, slightly lower than 3.6 percent in Q2 2017. In the first half, EBITDA grew 13.3 percent to KD 16.8 million. EBITDA margin in the first half remained flat at 3 percent vs. the same period in the previous year.
GIL is accelerating its digital transformation to increase the efficiency of its business processes, gain business insights, develop innovative logistics solutions, differentiate its products and better connect to its customers.