Agility first quarter profit surges 29% on higher revenue

Total revenue during the period also climbed nearly 29% to $1.6bn

Agility reported a 29% increase in its first-quarter profit on higher revenue. AFP

Agility, one of the largest logistics firms in the Middle East and North Africa, reported a 29 per cent increase in its first-quarter profit on higher revenue.

Net profit attributable to equity holders of the parent company for the three-months to March 31 rose to 12.6 million Kuwaiti dinars ($42m), the company said in a statement to the Dubai Financial Market, where its shares trade. Total revenue during the period also climbed nearly 29 per cent to 485m dinars and miscellaneous income more than doubled to 2.7m dinars.

“Agility started 2021 on a good note,” Tarek Sultan, the company’s vice chairman and chief executive, said.

“Agility’s Global Integrated Logistics business performed well, with favourable market conditions as well as cost controls playing an important role. Agility’s Infrastructure companies overall are showing strong signs of recovery from the effects of the global pandemic.”

The logistics sector was heavily impacted by the coronavirus pandemic, which disrupted trade and supply chains when it started spreading rampantly last year. But the industry has gradually emerged from a pandemic-induced slump.

The company’s total assets jumped 4.5 per cent year-on-year to 2.34 billion dinars, according to the statement. Total liabilities also rose 5.7 per cent to 1.13bn dinars.

Agility's core logistics business, Global Integrated Logistics (GIL) posted net revenue of 77.2m dinars, up 16.2 per cent compared to first-quarter of 2020. Net revenue grew in contract logistics as well as in air freight and ocean freight. The business was sold to Denmark's DSV Panalpina last month.

Net revenue at the company’s infrastructure group was flat during the reporting period.

Agility Logistics Parks's revenue declined 10.2 per cent, due to the loss of revenue from “Amghara land in Kuwait,” it said. This was partially offset by an increase in revenue from Saudi operations.

United Projects for Aviation Services Company, an Agility unit that provides facilities management services, saw a 38.7 per cent drop in revenue, primarily due to the suspension of operations at the Kuwait International Airport and the continuation of travel restrictions imposed as a result of the pandemic.

At GCS, Agility’s customs modernisation company, revenue increased 8.3 per cent in the first quarter.

“Entities impacted by the pandemic are recovering, and each company is continuing to explore growth opportunities,” Mr Sultan said.

“Agility’s long-term vision is to actively pursue growth in emerging markets and new technologies through these businesses and beyond. The DSV transaction will act as a catalyst to accelerate the pace, as well as expand the scope and scale, of investments in that segment.”