Agility Reports 8% Q3 Earnings Increase

Agility, a leading global logistics provider, today reported third-quarter earnings of 13 fils per share on net profit of KD 21.7 million, an increase of 8.4% (or 12.1% excluding IFRS16 impact) over the same period in 2018. 

Q3 EBITDA grew 20.9% (or 2.8% excluding IFRS16 impact) to KD 47.4 million, and revenue increased 1.6% to KD 400.7 million. Year to date, earnings were 38.2 fils per share and net profit was KD 63.6 million, up 7.9% (or 11.3% excluding IFRS 16 impact). Year-to-date EBITDA was KD 142.4 million, an increase of 24.9% (or 6.4% excluding IFRS 16 impact). Revenue for the first three quarters was KD 1,175.8 million, an increase of 2.2%. 

GIL gross revenue was KD 285 million, a 2.4% decline (or 0.7% decline on a constant currency basis) from same period in 2018 due to challenges within the freight forwarding industry. GIL’s Q3 net revenue was KD 67.3 million, a 4% increase (or 5.3% increase on a constant currency basis) vs. Q3 2018.  

The net revenue increase was driven mainly by growth in Ocean Freight, Project Logistics and Contract Logistics. The overall net revenue margin was 23.6% in Q3 vs. 22.2% in Q3 2018. 

Q3 Air Freight volume fell 15.8% (in tonnage) as a result of trade concerns and lower demand from customers across industries and geographies.  This decline in volume was partially offset by higher yields - expressed as net revenue/ton which increased 15.5%. As a result, Air Freight net revenue decreased 2.8% vs. Q3 2018. 

Ocean Freight TEUs fell 9.3%, but Q3 yields improved 13.7% vs. the same period in 2018. GIL Ocean Freight yields were strongest in the Americas and Europe. Ocean Freight net revenue improved 3.2% as compared with Q3 2018. 

Contract Logistics posted healthy growth, mainly in the US, Australasia, India and Singapore, with the MEA region continuing to perform well.  Project Logistics also showed solid and increased growth. Excluding IFRS 16 impact, year-to-date GIL EBITDA was KD 24.5 million, flat vs. the same period in 2018. Year-to-date net revenue improved 2.7%, and revenue fell 2.1%. To strengthen performance and its market differentiation, GIL is implementing its digital strategy.  

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