Agility's fourth quarter net profit soars 22.5% on improved revenues
The Kuwait-based logistics company is on track to achieve $800m Ebitda by 2020
Agility, one of the region’s biggest logistics companies, posted a 22.5 per cent increase in fourth-quarter net profit, as revenues from the international logistics business soar.
Net profit in the three months ending December rose to 19.3m Kuwaiti dinars from 15.7m dinars (Dh191.75m) a year earlier, the company said in a statement. Revenues grew 22.6 per cent to 386m dinars from 314.8m dinars for the same period.
The results beat the 18m dinar forecast from Bahrain’s Sico, according to a Bloomberg poll.
“To reach our target of $800m Ebitda by 2020, we remained focused on improving global integrated logistics’ [business unit] performance and investing in our infrastructure companies,” said Tarek Sultan, the company’s chief executive. “For every business in the group, 2017 was a critical year.”
Agility, which used to be the main food supplier to the US army in Iraq, is expanding into new areas and regions to diversify its revenue base. The company, which is listed in Kuwait and Dubai, is also investing heavily in Africa, building a mall in the UAE and setting up a logistics park in Saudi Arabia.
Full-year 2017 net income rose 16 per cent to 68.5m dinars, compared to 59.1m dinars a year earlier, it said.
Agility’s integrated logistics unit posted a 21.5 per cent rise in the fourth quarter revenue, with higher growth in air and ocean income as well as contract logistics.
“Contract logistics continued its strong growth in the fourth quarter, primarily in the Middle East and Asia Pacific, aided by a combination of new customers and investments in new facilities,” said the company.
Its infrastructure unit posted a 25 per cent revenue growth in the last three months of 2017, with plans to boost the efficiency of its Kuwaiti assets, develop a Saudi logistics park and expand in several locations in Africa.
“The company continues to grow in emerging markets logistics parks, fuel logistics, airport services, and commercial real estate development,” Mr Sultan said. “The core commercial logistics business is also growing its volumes, despite margin pressure in a tight market.”
Updated: February 21, 2018 01:26 PM