Agility reports revenue increase of 22.1% year-on-year

Agility

In FY2021, Agility reported revenues of KD486.2m*, up 22.1% y-o-y, and an EBITDA of KD109m, up 13.2% y-o-y. Most significantly, net profit rose by 2,250.7% y-o-y, reaching KD997.4m.

In 2021, Agility sold its core commercial logistics business, Global Integrated Logistics (GIL), to DSV, in exchange for 19.3m shares in DSV. As a result, Agility reported a one-time gain of almost KD1bn and is now the second-largest shareholder in DSV with an 8.0% stake.

Agility stated it enjoys a healthy balance sheet with KD2.9bn in assets including KD1.4bn of DSV shares. Net Debt stood at KD324.4m as of December 31, 2021

Agility Vice Chairman Tarek Sultan said: “Agility’s 2021 performance was exceptional. In addition to a significant one-time gain from the GIL sale, our portfolio of businesses performed well, returning to pre-COVID profitability levels. We will be looking to accelerate growth in these businesses as they contribute to our core operations and EBITDA.”

Sultan continued: “The DSV transaction and the sale of GIL fundamentally changed the structure of the company and reset the baseline for the continuing operations. Like most companies, Agility was adversely affected by the COVID pandemic in 2020 and 2021.Looking ahead, despite the challenging market conditions and geopolitical risks, we expect performance of our continuing operations to be strong and expect our operating results for 2022 to show a minimum of 20.0% growth compared to this year.  The board and the executive management team of the company continue to be focused on growing and enhancing shareholder value over time, and we are confident that with current M&A initiatives, as well as the organic and inorganic growth initiatives that we are working on across the controlled segment entities, we will continue to create value for shareholders in the medium and long term.”

Commenting on the company’s investments, Sultan said: “Today, we own roughly 8.0% of DSV. This investment represents a large portion of our balance sheet.”

Sultan also noted that Agility’s debt-levels were expected to increase in line with business growth needs, but that the company intends to keep borrowing within limits.

Agility Logistics Parks (ALP) revenue in 2021 was roughly in line with 2020 results, which benefitted from increased demand for warehousing facilities as companies and government entities continued to store more goods in the face of ongoing supply chain disruption. Demand for warehousing space continues to grow in the MEA and South Asia regions where ALP operates. Agility reported that ALP is optimising its existing land bank and adding to its supply of available land to meet customer demand. In 2021, ALP added roughly 150,000 sq m of built-up storage area. Operations in Kuwait, Saudi Arabia and Africa have performed well, and ALP is looking at new markets for additional growth.

Tristar, a fully integrated liquid logistics company, posted a 16.5% increase in revenue for the full-year 2021 vs. 2020. Profitability more than doubled and was in line with forecasts. This performance is driven by strong recovery in international oil prices, good performance in the Road and Transport segments, and favourable dry bulk charter rates in the Maritime segment. Tristar expects another year of growth in 2022.

National Aviation Services (NAS) reported 65.4% revenue growth year-over-year for 2021. The increase reflects the broad recovery in commercial aviation as flights, passengers and cargo volumes grew. In addition, NAS undertook cost-cutting measures that had a positive impact on overall performance and added new operations in the Democratic Republic of Congo, South Africa, Iraq (Baghdad) and Kenya. NAS’s performance also benefitted from its launch of technology solutions and applications intended to support governments and passengers by enhancing travel health and safety. In 2022, NAS and Agility publicly reported that both are in discussions for the potential acquisition of John Menzies, one of the world’s largest providers of aviation services.

United Projects for Aviation Services Company (UPAC) reported a 14.0% increase in revenue for 2021. The increase was driven by a rebound in airport-related services and parking, following the phased reopening of Kuwait International Airport in Q3. UPAC expects a gradual increase in airport traffic in 2022 and beyond, and a favourable outlook for its business.

UPAC is a co-developer of Abu Dhabi’s Reem Mall, on Reem Island. Construction is more than 95.0% complete. The retail, entertainment and leisure attraction is expected to open in 2022. Carrefour, the anchor tenant, recently opened its doors at Reem Mall.

At Global Clearinghouse Systems (GCS), Agility’s customs-modernization company, FY2021 revenue grew 32.1%. The increase was driven by higher trade volumes and company growth initiatives. GCS is pursuing opportunities to sustain future growth and diversify its sources of income.

Source: Agility

*1KD = €3.0/$3.3