Global logistics provider, Agility, reported a net profit of KWD14.6mn, an increase of 11.4% over the same period in 2016.
Agility reported a revenue of KWD320.5mn, a 7.3% increase over Q1 2016. The results represent the fifth consecutive quarter of double-digit growth in Agilitys EBITDA, in line with the companys long-term guidance.
Tarek Sultan, Agility vice chairman and CEO, said: Our performance has been driven by strong growth in our infrastructure companies in emerging markets and by the steady progress we have made in improving the underlying fundamentals of our commercial logistics business. We remain on track to achieve our target of $800mn in EBITDA by 2020.
Revenue for Agility Global Integrated Logistics (GIL), the companys core logistics business, grew 6.5% in Q1, to KWD240.3mn. Revenue growth was driven by all products. Air freight volume grew 16% and ocean freight volume grew 12.5% this quarter, both outpacing the market average.
GIL net revenue grew 2% in Q1, increasing in most products and showing a 9% increase in contract logistics over the same period a year earlier. Net revenue margins, 26% in Q1 2016, declined to 25%, mainly because of pressure on rates and tightening capacity on major trade lanes.
Sultan said: GIL is winning new business and containing its costs by driving productivity increases. We believe our strategic focus on trade lanes, solutions, and sales excellence will lead to continued growth in freight forwarding volumes this year.
GIL is investing in profitable and growing contract logistics businesses. New facilities are coming online in the Middle East and Singapore over the course of 2017. GIL is also investing in transforming its business through technology and further strengthening its online solutions for customers.
Agility Real Estate, the largest contributor in the group, increased revenue by 10.8% in Q1. In Kuwait, Agility is developing more than 900,000 sqm of warehousing over the next three years.
Tristar is a fully integrated liquid logistics company serving the downstream oil and gas industry with surface transport, ocean shipping, dangerous goods warehousing, fuel farm management, and other services. Tristar reported healthy growth in this quarter, driven by new shipping business complimented by its recent e-ships acquisition.
National Aviation Services (NAS) has become one of the largest ground handling and airport services companies in emerging markets. NASs Q1 revenue growth was driven by its Cote DIvoire operations, which saw double-digit increases in flight volumes. NAS is also launching operations in Morocco and working on improving yields in its Kuwait business.
UPAC, a publically-listed commercial real estate company, announced revenue increase by 7.4% to KWD3.5mn. UPAC continues to improve its managed projects at the Kuwait airport and Discovery Mall, increasing footfall and demand for space, and achieving 100% utilisation.