Agility has reported its Q3 2019 financial results. This article will focus on financial figures excluding IFRS 16 impact unless stated otherwise. Revenues rose 1.6% year-on-year to KWD400.7*m, and EBITDA grew 3.1% year-on-year to KWD40.4m. In Q3 2019, the company’s net profit increased 12.0% year-on-year to KWD22.4m.
Agility Global Integrated Logistics (GIL) gross revenue fell 2.4% to KWD285m (decline of 0.7% on a constant currency basis) from same period in 2018 due to challenges within the freight forwarding industry. GIL EBITDA declined by 1% due to higher operating expenses related to new facilities, as well as investments in digital transformation. GIL’s Q3 reported EBITDA was KWD7.8m. Net revenue increased 4% (or 5.3% increase on a constant currency basis) to KWD67.3m, driven mainly by growth in Ocean Freight, Project Logistics and Contract Logistics.
Q3 Air Freight volume fell 15.8% (in tonnage) as a result of trade concerns and lower demand from customers across industries and geographies. This decline in volume was partially offset by higher yields – expressed as net revenue/ton – which increased 15.5%. As a result, Air Freight net revenue decreased 2.8% year-on-year.
Ocean Freight TEUs fell 9.3%, but Q3 yields improved 13.7% vs. the same period in 2018. GIL Ocean Freight yields were strongest in the Americas and Europe. Ocean Freight net revenue improved 3.2% as compared with Q3 2018.
Contract Logistics posted healthy growth, mainly in the US, Australasia, India and Singapore, with the MEA region continuing to perform well. Project Logistics also showed solid and increased growth.
According to Agility, to strengthen performance and its market differentiation, GIL is implementing its digital strategy. By accelerating its digital transformation, GIL intends to enhance customer and supplier connectivity, create innovative complex customer solutions, increase the efficiency of its business processes, and enable comprehensive business insight.
Revenues in Agility’s Infrastructure group grew 13.4% to KWD119.7m. EBITDA rose 3.8% to KWD32.6m, with all entities in the group contributing to this performance.
Tarek Sultan, Agility Vice Chairman and CEO, said: “Our Infrastructure portfolio of companies drove our results in the third quarter, with all major entities seeing growth. Our Global Integrated Logistics (GIL) business, on the other hand, was affected by challenging market conditions and trade-war headwinds that have affected the industry as a whole.”
* $=KWD0.30/ €=KWD0.34
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