Agility has reported its Q2 2019 financial results. Revenues rose 3.2% year-on-year to KWD396.3*m, and EBITDA grew 31.2% year-on-year to KWD48.6m. In Q2 2019, the company’s net profit increased 8.1% year-on-year to KWD21.6m.
Agility Global Integrated Logistics (GIL) gross revenue fell 2.6% to KWD281.9m (1% on a constant currency), mainly due to currency fluctuations. Global Integrated Logistics achieved EBITDA growth of 7% despite higher operating expenses related to new facilities and higher staff costs for operations and commercial requirements. GIL’s Q2 reported EBITDA was KWD15.9m. Net revenue increased 4% to KWD69.4m, mainly as a result of better Ocean Freight and Contract Logistics performance.
GIL Air Freight net revenue decreased 1.8% as the result of lower job volume and tonnage, although the decrease was offset in part by higher yields. Q2 2019 tonnage fell 8% when compared to Q2 2018. The decrease was the result of weak market conditions and lower demand across industries and geographies, along with a return to more normal volumes following a spike in high-volume shipments a year earlier. The Air Freight market was affected by volume declines and shifts that have resulted from US-China tariffs and import restrictions.
Strong Ocean Freight performance was driven primarily by yield improvement, despite a 2% drop in TEUs. Ocean Freight performance was strongest in the Americas and Asia Pacific.
Contract Logistics growth continued in Q2 with gross revenue of KWD32.8m, a 1% increase from the same period in 2018. The Middle East-Africa region, notably the Kuwait and Egypt markets, was the key driver of growth and improved margins.
GIL is focusing on accelerating the roll-out of its global operating platform, as part of a broader digital transformation strategy that is intended to drive improved customer experience, more effective supplier management, enhanced business efficiency and productivity, and better data for decision-making.
Revenues in Agility’s Infrastructure group grew 21.2% to KWD118.2m. EBITDA rose 18.2% to KWD32.8m, with all entities in the group contributing to this performance.
Tarek Sultan, Agility Vice Chairman and CEO, said: “We had a good Q2 despite the tough environment we operate in. GIL reported very good results and continues to implement its strategy to drive operational efficiency. Agility’s Infrastructure companies performed well, and key initiatives in each business unit are moving ahead according to plan.”
Source: Agility
* $:KWD0.30/€:KWD0.35
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