Strong performance by logistics and infrastructure businesses boosted profitability
Kuwait's Agility reports 17.4% third quarter profit rise
Kuwait's Agility, one of top logistics firm in the Middle East, said its third quarter net profit climbed 17.4 per cent, driven by strong performance of global logistics business and companies included in its infrastructure portfolio of investments.
Net profit for the three-month period ending September 30 reached 17.8 million Kuwaiti dinars (Dh215.5m) from 15.2m dinars recorded for the same period in 2016. The revenues for the period grew by 15 per cent to 358.5m dinars, the Kuwait-listed company said.
Profit for the first nine-months of 2017 rose 13.7 per cent to 49.2m dinars, while the company’s revenues reached 1.02 billion dinars, an increase of 11.1 per cent from the corresponding period of 2016, the company said. It added that the results were in line with its long-term guidance and it is on track to meet its 2020 earnings before interest, taxes, depreciation and amortization (Ebitda) target of US$800m.
“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,” Tarek Sultan, the vice chairman and chief executive of Agility said.
The company’s global logistics business has also recorded double-digit rise in air and ocean tonnage, and contract logistics revenue growth despite tough market conditions in terms of capacity constraints and pressure on profits due to higher freight forwarding rates.
“Looking ahead, we are investing in technology so that we can better serve our customers online, and drive productivity, efficiency, and operational excellence,” Mr Sultan said.
Third quarter revenue for Agility Global Integrated Logistics - the company’s core logistics business - grew by 19.4 per cent year-on-year to 273m dinars. Agility’s Infrastructure group’s Ebitda advanced 24 per cent, to 29.4m dinars for the three-month period, while its revenues recorded a 4 per cent year-on-year growth to 91m dinars.
Agility's real estate business is posting revenue growth as it focused on improving efficiency of the existing assets and its development of new warehouses across the Arabian Gulf countries and Africa, the company said.