Property boosts Agility profits but freight is flat

Middle East headquartered global freight forwarder Agility reported third quarter earnings up 18.1% to 14.2 fils per share on net profit of KWD17.8m, an increase 17.4% over the same period in 2016.
However, the  growth was due mainly to a strong performance by its infrastructure business; the forwarding business was relatively flat, it said.
EBITDA earnings grew 18.3% to KWD34.2m while revenue increased 15% to KWD358.5m.
For the first nine months of 2017, earnings were 39.1 fils per share, up 14.2%, and net profit was KD 49.2m, up 13.7%. EBITDA earnings for the first nine months was KWD97.6m, an increase of 16.5%; revenue was KWD1,021.1m, up 11.1%.
Vice chairman and chief executive, Tarek Sultan, said: “We remain on track to meet our 2020 EBITDA target of $800m. Agility’s Infrastructure portfolio of companies continue to drive performance, and we are heavily investing in further growing their footprint in emerging markets across the Middle East, Asia and Africa.” 
The global logistics business saw double-digit growth in air and ocean tonnage, and contract logistics revenue growth. “Even so, it’s a tough market because capacity constraints and higher freight forwarding rates continue to affect profitability,” Sultan said. “Looking ahead, we are investing in technology so that we can better serve our customers online, and drive productivity, efficiency, and operational excellence.”
Third quarter revenue for the core Agility Global Integrated Logistics (GIL) business, grew by 19.4% to KD 273m. Agility said its strategy of committing to defined solutions and customer segments had increased revenue across all products and generated growth in all customer segments. Air and ocean revenue increased by over 20%, as a result of a 16.1% growth in air tonnage and 12% increase in ocean TEUs. Project Logistics also improved revenue by 27.3%.
Net revenue in the third quarter increased 2.4%, primarily because of growth in contract logistics, which has been performing well in the Middle East and Asia Pacific.
But net revenue margins shrunk to 22.6% compared with 26.3% in the third quarter of 2016, as capacity constraints and higher freight market rates reduced forwarding yields.  
As a result, EBITDA in the third quarter grew only by 1.4% compared with the prior year although, excluding foreign exchange effects, GIL’s EBITDA grew 3.4% in Q3.  
Agility’s Infrastructure group EBITDA earnings rose 24%, to KD 29.4m in the third quarter, while revenue grew 4% to KD 91m. 
Agility Real Estate posted healthy revenue growth as it focused on improving efficiency of the existing assets and in developing new warehouses in the Arabian Gulf and Africa.

Share this story

Related Topics

Latest freight forwarder news

Kuehne+Nagel Air enhances New York hub

Swiss-headquartered Kuehne+Nagel has expanded its John F. Kennedy International airport (JFK) facility in New York. The forwarder has added a…

Read More

Share this story

TIACA survey reveals growing pressure on sustainability in air cargo

TIACA’s latest sustainability survey has revealed a growing focus on sustainability in air cargo but also a gap between the…

Read More

Share this story

QCS and Team Global Logistic to expand reach with merger

Quick Cargo Service and Team Global Logistic will merge their businesses with the aim of expanding the reach of service….

Read More

Share this story

Air Cargo News

Air Cargo News
Established in 1983, Air Cargo News is the leading source of news, information, interviews, analyses and reports to the global airfreight industry. Our leading portfolio includes print, digital and events that give businesses in the airfreight industry the ability to connect with decision-makers in this sector.