The global logistics provider saw net profits jump 12.1 percent year-over-year to $55.6 million for the second quarter, stating that much of the growth was contributed by the company’s infrastructure group.
Global logistics provider Agility reported a net profit of 16.8 million Kuwaiti dinar (U.S. $55.6 million) for the second quarter, a 12.1 percent increase.
Net profit for the first half of the year totaled KD 31.4 million, an 11.6 percent increase over the same period in 2016.
“Agility’s Infrastructure group was the primary driver of performance in Q2,” said Vice Chairman and CEO Tarek Sultan. “Our industrial real estate business and aviation services company delivered particularly strong results. Revenue in our logistics business is growing because air and ocean volumes are increasing and contract logistics revenue is expanding, but rate pressure continues to affect profitability.”
Revenue for Agility Global Integrated Logistics (GIL), the company’s core logistics business, grew 9.6 percent in Q2, to KD 255.2 million. Air and ocean revenue grew above market average, driven by volume growth of 14.7 percent and 12.9 percent in air tonnage and ocean TEUs respectively, said the company.
Contract logistics revenue also grew, particularly in the Middle East and Asia Pacific, with the improved performance coming from a combination of new and existing warehousing facilities, according to Agility.
However, net revenue in during the second quarter was flat compared to the same period a year ago, primarily due to significant yield degradation in freight forwarding because of capacity constraints and higher market rates. Net revenue margins contracted to 24.9 percent, compared with 27.3 percent in 2016, the company said.
Agility’s Infrastructure group, which offers logistics-related services in emerging markets, posted revenues of KD 89.1 million, or a 12.1 increase year-over-year, due to Agility Real Estate, National Aviation Services (NAS) and Tristar growth.
Agility Real Estate increased revenue 11.6 percent in the second quarter and is developing new warehouses across the Arabian Gulf countries and Africa. NAS grew its revenue by 17 percent via expansion in Africa and the Middle East as well. Tristar grew 13.5 percent via new shipping contracts and its recent E-ships acquisition.
Agility continues to focus on “investing in its infrastructure businesses in emerging markets” as well as “improving in technology-driven transformation of its processes and development of online solutions for customers,” the company said.
Agility posts strong Q2, half-year results
