Revenues increased 28.6% to KD 485.5 million
Agility recently reported its first quarter 2021 earnings of 6.01 fils per share on net profit of KD 12.6 million, an increase of 28.7% over the same period in 2020. EBIT increased 31% to KD 26.9 million, and revenue increased 28.6% to KD 485.5 million.
“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,” remarked Tarek Sultan Al-Essa, Agility Vice Chairman and CEO, Agility.
Regarding Agility’s recent decision to sell its core commercial logistics business, Sultan said, “Going forward, Agility’s agreement with DSV Panalpina for DSV to acquire Agility’s Global Integrated Logistics business allows us to retain the assets generating the bulk of our operating profit, while taking advantage of the scale, experience, operational excellence and possibilities offered by working with DSV, one of the industry’s top performers,” notified Sultan.
Agility Global Integrated Logistics (GIL)
In Q1-2021, GIL achieved EBIT of KD 16.4 million, a 936.1% increase from same period a year earlier. The increase was driven by favourable market conditions in Freight Forwarding and growth in Contract logistics, along with strong cost controls.
Agility’s Infrastructure Companies
Agility’s Infrastructure group EBIT grew 2.2% to KD 24.7 million for the first quarter of 2021. Infrastructure group gross revenue was flat. Entities within the Infrastructure group are pursuing their growth strategies and have begun to recover from downturns caused by the pandemic. The Infrastructure group remains the main contributor to the group’s profitability.
Agility Logistics Park (ALP) revenue declined 10.2% in the first quarter due to the loss of revenue from Amghara land in Kuwait. This decrease was partially offset by an increase in revenue from Saudi operations. ALP continues to see strength in demand for warehousing space.
Tristar, a fully integrated liquid logistics company, posted almost a flat Q1 revenue. However, the company was able to record single-digit profitability growth, mainly due to improved performance in its fuel business. Tristar’s long-standing relationships and repeat business with blue-chip clients have been key enablers of its success.
After a difficult 2020, National Aviation Services (NAS) profitability returned to pre-COVID levels in Q1. Despite a significant drop in flight volumes across its network and a 7% drop in revenue, NAS implemented cost cuts and controls that yielded results.
United Projects for Aviation Services Company (UPAC) experienced a 38.7% Q1 decline in revenue, primarily due to the cessation of operations at the Kuwait International Airport and the continuation of pandemic-related travel restrictions. UPAC continues to take various measures to reduce the negative impact on its business.
At GCS, Agility’s customs modernization company, revenue increased 8.3%. GCS is seeing signs of recovery and increased trade volumes. GCS is examining new customs modernization opportunities and ways of diversifying its income.
