Agility has released its results for Q1-21, reporting a net profit of KD*12.6m. This represents an increase of 28.7% over the same period in 2020. The company’s EBIT increased 31% to KD26.9m, with revenue increasing 28.6% to KD485.5m.
Tarek Sultan, Agility Vice Chairman and CEO, said, “Agility started 2021 on a good note. Agility’s Global Integrated Logistics business performed well, with favourable market conditions as well as cost controls playing an important role. Agility’s Infrastructure companies overall are showing strong signs of recovery from the effects of the global pandemic. These Infrastructure businesses contributed an average of 80% of Agility’s EBIT over the past 5 years.”
Agility’s Global Integrated Logistics (GIL), recently acquired by DSV Panalpina, achieved an EBIT of KD16.4m, a 936.1% increase on the same period of the previous year. The net revenue of GIL increased 16.2% to KD77.2m. Both increases were driven by favourable market conditions in freight forwarding and growth in contract logistics, with the EBIT also being increased by strong cost controlling. Air freight net revenue increased, with Q1-21 tonnage being 14.8% higher than Q1-20. Ocean freight net revenue increase was primarily due to increased yields, with worldwide effective ocean capacity shrinking as volumes rebounded, especially in Asia Pacific and Europe. Contract logistics growth mainly came from the Asia Pacific and MEA regions.
Agility’s Infrastructure group EBIT grew 2.2% to KD24.7m in the first quarter of 2021. The group’s gross revenue was flat. Entities within the group are pursuing growth strategies and have begun to recover from downturns caused by the pandemic. The Infrastructure group is the main contributor to Agility group’s profitability.
Agility Logistics Park saw a 10.2% decline in revenue due to loss of revenue from Amghara land in Kuwait. This loss was somewhat offset by an increase in revenue in its Saudi operations. Continued strength in demand for warehousing space has led to Agility’s development strategy of increasing its land bank across the countries in which it operates. In the Middle East, the Riyadh Logistics Park is almost fully developed, while in Kuwait the company is looking to optimise its existing assets and will kick off the Sabah Al Ahmed project in July.
Tristar, an integrated liquid logistics company, posted a near flat Q1 revenue but recorded a small profitability growth from improved performance in its fuel business. Tristar benefits heavily from long-standing relationships and repeat business with blue-chip clients.
The profitability of National Aviation Services returned to pre-covid levels in the first quarter of 2021. Despite a significant drop in flight volumes and a 7% drop in revenue, the company successfully implemented cost-cutting measures. The company also launched new operations at Baghdad International Airport. Cargo is the more positive side of the business, with passenger lounges remaining depressed.
United Projects for Aviation Services Company experienced a 38.7% decline in revenue, primarily due to the cessation of operations at Kuwait International Airport and the continuation of travel restrictions. The vaccination program underway in Kuwait is expected to generate renewed air travel and a recovery in air traffic by Q3.
Source: Agility
*KD=$3.32/€2.73
For your logistics and transportation management needs
Providing high frequency logistics and supply chain data and analysis for all those invested in the industry.