Agility has reported Q3 revenue increase of 15% to KWD358.5m and EBITDA increase of 18.3% to KWD34.2m. Agility’s net profit increased 17.4% to KWD17.8m. Earnings per share was 14.2 fils over the same period in 2016.
Through the first nine months, earnings were 39.1 fils per share, up 14.2%, and net profit was KWD49.2m, up 13.7%. EBITDA for the first nine months was KWD97.6m, an increase of 16.5% and revenue was KWD1,021m, up 11.1%.
Tarek Sultan, Agility Vice Chairman and CEO, said: “We remain on track to meet our 2020 EBITDA target of $800 million. 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.”
He added: “Agility’s global logistics business has shown 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.”
Q3 revenue for Agility Global Integrated Logistics (GIL), the company’s core logistics business, grew by 19.4% to KWD273m. GIL’s commercial strategy is to drive growth by committing to defined solutions and customer segments, improved sales productivity, and development of efficient trade lanes. That strategy has increased revenue across all products and generated growth in all customer segments. Air and ocean posted revenue increases of more than 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 Q3 increased 2.4% primarily as a result of growth in contract logistics, which has been performing well in the Middle East and Asia Pacific. This growth is occurring at both new and existing warehousing facilities. Net revenue margins shrunk to 22.6% compared with 26.3% in Q3 2016, because capacity constraints and higher freight market rates adversely affected yields for freight forwarding.
As a result, Q3 EBITDA was almost flat and grew only by 1.4% versus the prior year. EBITDA was further affected by foreign exchange rates. Excluding foreign exchange impact, GIL’s EBITDA grew 3.4% in Q3.
GIL continues to refine its approach to its customer segments and product portfolio, improve operational performance and cost discipline, and invest in technology and systems that will enhance its efficiency and productivity. It is developing tools to better serve customers online.
Agility’s Infrastructure group EBITDA rose 24%, to KWD29.4m in Q3 and revenue grew 4% to KWD91m.
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