Agility second-quarter net profit up on strong warehousing and infrastructure units
Net revenue for the quarter stood at 129.1 million Kuwaiti dinars
Agility, one of the Arabian Gulf's biggest logistics firms, reported a 8 per cent year-on-year rise in second-quarter net profit due to strong performance in its warehousing and infrastructure businesses.
Net profit for the three month period ending June 30 rose to 21.6 million Kuwaiti dinars (Dh260.8m), the Dubai and Kuwait-listed company said in a statement on Tuesday.
Net revenue for the quarter stood at 129.1m dinars, up 3.9 per cent from the year-earlier period.
“We had a good Q2 despite the tough environment we operate in,” said Tarek Sultan, Agility vice chairman and chief executive.
“GIL [Global Integrated Logistics] reported very good results and continues to implement its strategy to drive operational efficiency. Agility’s infrastructure companies performed well, and key initiatives in each business unit are moving ahead according to plan.”
Agility’s GIL division recorded a 2.6 per cent decline in revenue to 281.9m dinars, mainly due to currency fluctuations. However, second-quarter revenue from its infrastructure division grew 21.2 per cent to 118.2m dinars.
The company’s air freight net revenue decreased 1.8 per cent as the result of lower volumes and tonnage, although the decline was offset in part by higher yields, according to the company. Second-quarter 2019 tonnage fell 8 per cent versus second quarter of 2018.
“The air freight market was affected by volume declines and shifts that have resulted from US-China tariffs and import restrictions,” the company said.
Agility Logistics Parks (ALP) reported 15 per cent revenue rise for the quarter with new facilities completed in late 2018 contributing to the growth along with yield improvement at existing facilities.
ALP is looking to develop new facilities to optimise the use of its existing land bank in Kuwait. In Saudi Arabia, ALP has completed the development of two of the three warehouses it is building in 2019, each with 40,000 square metres of capacity.
“ALP Saudi Arabia is now moving ahead with the development of the third warehouse. In Africa, ALP projects are progressing well. New warehousing space at the ALP in Ghana will be delivered soon. More space in other locations will be added towards the end of 2019,” the company said.
Updated: August 13, 2019 03:33 PM