Agility profits up despite tough airfreight market
14 / 08 / 2019
Logistics and infrastructure firm Agility saw net profits increase by 8.1% year on year in the second quarter despite its airfreight business coming under pressure.
The company reported a second-quarter revenue increase of 3.2% year on year to KD396.3m, while earnings before interest, tax, depreciation and amortisation (ebitda) improved by 31.2% to KD48.6m and net profits reached KD21.6m.
Results were driven by its Agility Global Integrated Logistics (GIL) division.
Tarek Sultan, Agility vice chairman and chief executive, said: “We had a good second quarter 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.”
GIL achieved second-quarter EBITDA growth of 7% to KD15.9m despite higher operating expenses related to new facilities and higher staff costs for operations and commercial requirements. Gross revenue fell 2.6% to KD281.9m, mainly due to currency fluctuations.
“The global airfreight market continued to be under pressure,” the company said. “GIL airfreight net revenue decreased 1.8% as the result of lower job volume and tonnage, although the decrease was offset in part by higher yields.
“Second quarter 2019 tonnage fell 8% vs. second quarter 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 airfreight market was affected by volume declines and shifts that have resulted from US-China tariffs and import restrictions.”
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”.