22/02/2018 05:25 AST
Kuwait-based Agility, a leading global logistics provider, has reported a net profit of KD68.5 million ($228 million) for 2017, as against KD59.1 million in the previous year, marking an increase of 16 per cent.
Revenue for the year reached KD1,407 million and EBITDA was KD135.2 million.
For the fourth quarter (Q4) 2017, Agility reported a net profit of KD19.3 million, or 15.3 fils per share, an increase of 22.5 per cent over Q4 2016. EBITDA for Q4 2017 was KD37.6 million, an increase of 19.8 per cent.
The Board of Directors has recommended a cash dividend distribution of 15 per cent (15 fils per share), along with 15 per cent bonus shares (15 shares for every 100 shares), subject to approval of the General Assembly.
“In 2017,Agility posted another year of healthy growth and continued to plant the seeds for a future of sustainable growth. To reach our target of $800 million EBITDA by 2020, we remained focused on improving GIL’s performance and investing in our Infrastructure companies. For every business in the group, 2017 was a critical year,” said Tarek Sultan, Agility CEO and vice chairman.
Agility Global Integrated Logistics
Agility Global Integrated Logistics (GIL) revenue grew 14.3 per cent to KD1,061.6 million in 2017. The increase is attributable to growth in the freight forwarding business and contract logistics. Full year net revenue grew 2.6 per cent. Net revenue margins shrunk to 23.7 per cent from 26.4 per cent amid yield pressure across the industry.
In Q4, GIL revenue was KD293 million, a 21.5 per cent increase over Q4 2016. Air and ocean revenue were up 25 per cent on air tonnage growth of 9.7 per cent and a 12 per cent increase in ocean TEUs. Contract logistics and specialties (Project Logistics and Fairs & Events) improved revenue 17.6 per cent over the same period in 2016.
Fourth-quarter net revenue increased 6 per cent, but net revenue margins declined to 22.6 per cent vs. 26 per cent in Q4 2016, amid yield pressure throughout the freight forwarding industry. Contract logistics continued its strong growth in Q4, primarily in the Middle East and Asia Pacific, aided by a combination of new customers and investments in new facilities. EBITDA improved 30.7 per cent with margins expanding from 4 per cent in Q4 2016 to 4.3 per cent in Q4 2017.
“GIL is growing through a strategy that focuses on defined solutions and customer segments, enhanced sales productivity and efficient trade lane development,” Sultan said. “In addition, GIL is building systems and solutions that enable business insight, efficiencies, and increased productivity for our operations and for our customers. As always we are working hard to maintain cost discipline.”
Agility’s infrastructure companies
For the full year, revenue for the Infrastructure group grew by 12.7 per cent, EBITDA has also increased by 28.2 per cent to KD120.9 million with margins expanding from 29.7 per cent in FY 2016 to 33.7 per cent in 2017. Agility is investing in those companies to drive its future growth.
Infrastructure group revenue grew 25 per cent in Q4 2017. EBITDA increased largely on strong performance by Global Clearinghouse Systems (GCS), Agility Real Estate (RED), National Aviation Services (NAS) and Tristar.
“Agility thanks its shareholders, customers, employees and partners for a strong year. The company continues to grow in emerging markets logistics parks, fuel logistics, airport services, and commercial real estate development,” said Sultan.
“The core commercial logistics business is also growing its volumes, despite margin pressure in a tight market. Agility is accelerating its strategy to transform the business through technology and establish its position as the leading digital player in our industry,” he added.
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