Agility’s net profit increased 28.7% to US$41.9 million in the first quarter year-on-year
EBIT increased 31% and revenue rose by 28.6%
Global Integrated Logistics achieved a 936.1% increase in EBIT while its net revenue increased by 16.2%
The Infrastructure group’s EBIT grew 2.2% in the first quarter of 2021 while gross revenue was flat
Global logistics provider Agility has reported a net profit of KD12.6 million (US$41.9 million) for the first quarter of 2021, an increase of 28.7% over the same period in 2020.
The company’s EBIT increased 31% to KD26.9 million, with revenue increasing 28.6% to KD485.5 million.
Tarek Sultan, Agility vice chairman and CEO, said, “Agility started 2021 on a good note. Agility’s Global Integrated Logistics business performed well, with favourable market conditions as well as cost controls playing an important role.”
Agility’s Infrastructure business is showing strong signs of recovery from the effects of the global pandemic, contributing to an average of 80% of Agility’s EBIT over the past five years, Tarek Sultan said in a recent release.
Agility’s Global Integrated Logistics (GIL), recently acquired by DSV Panalpina for $4.2 billion, achieved an EBIT of KD16.4 million, a 936.1% increase on the same period of the previous year. The net revenue of GIL increased 16.2% to KD77.2 million. Both increases were driven by favorable market conditions in freight forwarding and growth in contract logistics, with the EBIT also being increased by strong cost controlling.
GIL’s air freight net revenue increased, with the first quarter tonnage being 14.8% higher than for the same period last year. Ocean freight net revenue increase was primarily due to increased yields, with worldwide effective ocean capacity shrinking as volumes rebounded, especially in Asia Pacific and Europe. Contract logistics growth mainly came from the Asia Pacific and MEA regions.
Meanwhile, Agility’s Infrastructure group’s EBIT grew 2.2% to KD24.7 million in the first quarter of 2021. The group’s gross revenue was flat. Entities within the group are pursuing growth strategies and have begun to recover from downturns caused by the pandemic. The Infrastructure group is the main contributor to Agility group’s profitability.
Under the infrastructure group, Agility Logistics Park saw a 10.2% decline in revenue due to loss of revenue from Amghara land in Kuwait. This loss was somewhat offset by an increase in revenue in its Saudi operations.
Tristar, an integrated liquid logistics company, posted a near flat Q1 revenue but recorded a small profitability growth from improved performance in its fuel business.
The profitability of National Aviation Services returned to pre-Covid levels in the first quarter of 2021. Despite a significant drop in flight volumes and a 7% drop in revenue, the company successfully implemented cost-cutting measures. The company also launched new operations at Baghdad International Airport. Cargo is the more positive side of the business, with passenger lounges remaining depressed.
United Projects for Aviation Services Company experienced a 38.7% decline in revenue, primarily due to the cessation of operations at Kuwait International Airport and the continuation of travel restrictions.
Photo from Agility’s website