Agility’s net profits and earnings hit by “challenging” 2020
15 / 03 / 2021
By Rachelle Harry
Agility’s logistics division last year saw revenues and operating profits improve, but the overall company was held back by its infrastructure division in a “challenging year”.
The company posted a 2.7% year-on-year climb in revenues to KD1.6bn, while earnings before interest, tax, depreciation and amortisation (ebitda) declined 15.9% to KD162.4m. Net profit declined by 52.1% year on year to KD41.6m.
However, Global Integrated Logistics’ (GIL) full-year 2020 revenues reached KD283.7m — a 3.8% increase on a year earlier. Ebitda imporved by 13.6% to KD66.6m.
“Volumes declined in both airfreight and ocean freight in 2020 — by 15.6% for air (tonnage) and 12% for ocean (TEUs) — as a result of Covid-19’s impact on demand and economic contraction across industries and geographies,” the company explained. “However, higher yields in airfreight, driven by continued demand for exceptional shipments, including many for life sciences customers and products, offset the decline in volume.”
The company’s Contract Logistics business posted a 12.2% increase in revenue, “mainly as a result of strong performance in the Middle East (Kuwait, Saudi Arabia and Abu Dhabi) and Asia Pacific”.
Its infrastructure business saw revenues drop 12% and ebitda was 24.4%.
Tarek Sultan, chief executive and vice chairperson, said 2020 was a challenging year for most businesses.
“Our company moved swiftly to adjust its cost structure to match the reality confronting each part of the business, while at the same time making sure to preserve our long-term strategic vision and ongoing support for our communities around the world,” he said.
“We are proud of the steps we took to keep our frontline workers safe, and keep cargo moving for our customers in the face of one of the greatest supply chain disruptions the world has ever seen.”
Sultan added that Agility must remain agile, flexible and ready to adjust to ongoing global economic uncertainty in 2021.
“Our goal is not only to weather the storm, but to emerge stronger than ever from this crisis,” he said.
Looking at Agility’s Q4 2020 figures, the company achieved a 12.4% year-on-year increase in revenues to KD452.7m. Ebitda declined 21.2% year on year to KD20m and net profit declined 56.5% to KD10.1m.
GIL posted Q4 revenues of KD76.4m — 9.3% higher than the same period in 2019.Ebitda increasd 17.1% year on year to KD19.4m.
“This improvement was primarily driven by strong airfreight and Contract Logistics results, as well as significant cost reductions across the business,” the company said of its Q4 results.
It added: “The Q4 airfreight revenue increase of 52.5% was driven by a continuation of exceptional shipments, life science product movements and even higher charter activity. Ocean freight revenue, down 7% [year on year] was affected by volume reductions and capacity/equipment shortages.”
Looking forward: “GIL’s is working to increasingly digitise and automate its processes to enhance customer and supplier connectivity, create innovative customer solutions and enable comprehensive business insight to support optimal decision making. ”
The company’s Contract Logistics posted a 22.9% increase in revenue in Q4 2020.
Sultan concluded: “We will continue to remain true to our name, and be flexible and proactive as we navigate through Covid-19 and beyond. As always, we thank our employees, our customers, our shareholders, our suppliers and our partners for their support — this year more than ever.”