Kuwait-based Agility, a leading global logistics provider, has reported a net profit of KD14.6 million ($47.8 million) for the first quarter of the year, an increase of 11.4 per cent over the same period in 2016.

Agility reported EBITDA of KD30.8 million, a 17.4 per cent increase, along with revenue of KD320.5 million, a 7.3 per cent increase over Q1 2016. The results represent the fifth consecutive quarter of double-digit growth in Agility’s EBITDA, in line with the company’s long-term guidance.

“Our performance has been driven by strong growth in our Infrastructure companies in emerging markets and by the steady progress we have made in improving the underlying fundamentals of our commercial logistics business,” said Tarek Sultan, Agility vice chairman and CEO.

 “We remain on track to achieve our target of $800 million in EBITDA by 2020,” he added.   

Agility Global Integrated Logistics (GIL)

Revenue for Agility Global Integrated Logistics (GIL), the company’s core logistics business, grew 6.5 per cent in Q1, to KD240.3 million. Revenue growth was driven by all products. Air freight volume grew 16 per cent and ocean freight volume grew 12.5 per cent this quarter, both outpacing the market average.

GIL net revenue grew 2 per cent in Q1, increasing in most products and showing a 9 per cent increase in contract logistics over the same period a year earlier. Net revenue margins, 26 per cent in Q1 2016, declined to 25 per cent, mainly because of pressure on rates and tightening capacity on major trade lanes.

GIL EBITDA fell by 12 per cent (7.4 per cent on a constant currency basis) for the quarter, despite revenue and net revenue growth. GIL’s Q1 EBITDA margins were 2.4 per cent vs. 2.9 per cent in Q1 2016. EBITDA decreased because of increased currency fluctuations; ongoing investments in technology development; and increased investment in solutions and growth opportunities in its core markets and verticals.

“GIL is winning new business and containing its costs by driving productivity increases. We believe our strategic focus on trade lanes, solutions and sales excellence will lead to continued growth in freight forwarding volumes this year,” Sultan said.

GIL is investing in profitable and growing contract logistics businesses. New facilities are coming online in the Middle East and Singapore over the course of 2017. GIL is also investing in transforming its business through technology and further strengthening its online solutions for customers. – TradeArabia News Service