Kuwait-based Agility has reported a net profit of KWD68.5mn ($228mn) for 2017, as against KWD59.1mn in the previous year, marking an increase of 16%. Revenue for the year reached KWD1,407mn and EBITDA was KWD135.2mn.
For the fourth quarter (Q4) 2017, Agility reported a net profit of KWD19.3mn, or 15.3 fils per share, an increase of 22.5% over Q4 2016. EBITDA for Q4 2017 was KWD37.6mn, an increase of 19.8%.
The board of directors has recommended a cash dividend distribution of 15%t (15 fils per share), along with 15% bonus shares (15 shares for every 100 shares), subject to approval of the General Assembly.
Tarek Sultan, Agility CEO and vice chairman, said: “In 2017, Agility posted another year of healthy growth and continued to plant the seeds for a future of sustainable growth. To reach our target of $800mn EBITDA by 2020, we remained focused on improving GILs performance and investing in our infrastructure companies. For every business in the group, 2017 was a critical year.”
Agility Global Integrated Logistics
Agility Global Integrated Logistics (GIL) revenue grew 14.3% to KWD1,061.6mn in 2017. The increase is attributable to growth in the freight forwarding business and contract logistics. Full year net revenue grew 2.6%. Net revenue margins shrunk to 23.7% from 26.4% amid yield pressure across the industry.
In Q4, GIL revenue was KWD293mn, a 21.5% increase over Q4 2016. Air and ocean revenue were up 25% on air tonnage growth of 9.7% and a 12% increase in ocean TEUs. Contract logistics and specialties (Project Logistics and Fairs & Events) improved revenue 17.6% over the same period in 2016.
Fourth-quarter net revenue increased 6%, but net revenue margins declined to 22.6% vs. 26% in Q4 2016, amid yield pressure throughout the freight forwarding industry. Contract logistics continued its strong growth in Q4, primarily in the Middle East and Asia Pacific, aided by a combination of new customers and investments in new facilities. EBITDA improved 30.7% with margins expanding from 4% in Q4 2016 to 4.3% in Q4 2017.
“GIL is growing through a strategy that focuses on defined solutions and customer segments, enhanced sales productivity, and efficient trade lane development,” Sultan added. In addition, GIL is building systems and solutions that enable business insight, efficiencies, and increased productivity for our operations and for our customers. As always we are working hard to maintain cost discipline.”
Agilitys infrastructure companies
For the full year, revenue for the infrastructure group grew by 12.7%, EBITDA has also increased by 28.2% to KWD120.9mn with margins expanding from 29.7% in FY 2016 to 33.7% in 2017. Agility is investing in those companies to drive its future growth.
Infrastructure group revenue grew 25% in Q4 2017. EBITDA increased largely on strong performance by Global Clearinghouse Systems (GCS), Agility Real Estate (RED), National Aviation Services (NAS), and Tristar.
Agility thanks its shareholders, customers, employees and partners for a strong year. The company continues to grow in emerging markets logistics parks, fuel logistics, airport services, and commercial real estate development, said Sultan.
He further added: The core commercial logistics business is also growing its volumes, despite margin pressure in a tight market. Agility is accelerating its strategy to transform the business through technology and establish its position as the leading digital player in our industry.”