Agility’s logistics business on the up in Q3
09 / 11 / 2020
By Damian Brett
Agility’s logistics business saw both revenues and operating profits increase during the third quarter of the year.
Global Integrated Logistics’ (GIL) third quarter earnings before interest, tax, depreciation and amortisation (ebitda) stood at KD18.5m, a 35.2% increase from the same period in 2019. Gross revenue was KD305.7m, a 7.3% increase from last year.
The company said the improvement was primarily driven by significant cost reductions across the business. It also reported improved revenues in airfreight and contract logistics, but declines in ocean freight, fairs and events, and project logistics.
“The third airfreight net revenue increase of 39.1% was driven by continued demand for exceptional shipments related to the life sciences vertical,” the logistics firm said. “Ocean freight net revenues declined 14.5% when compared with third quarter 2019, as a result of volume and yield compression.
“Airfreight and ocean freight volumes decreased in Q3 versus the same period in 2019, as a result of customers’ demand and production disruption arising from Covid-19 as well as capacity constraints.”
Contract Logistics continues to experience strong growth (12.7% net revenue growth), mainly in the MEA Region (Kuwait, Saudi Arabia, UAE), where there was “strong performance” at new facilities, along with increased efficiencies.
Fairs and events have been hurt significantly by coronavirus-related postponements and cancellations.
“Starting in Q1, GIL introduced a range of cost reduction measures intended to ensure continued strength of ebitda performance in anticipation of falling global trade volumes,” the company added.
“This positions GIL well for operating in the current environment. GIL continues to focus on operational productivity as well as customer solutions to respond to the changing market environment.”