In Q1 2019, Agility reported revenues of KWD378.8m* (€1,099m). This represented a 1.9% growth from the same period in the previous year. EBITDA saw an increase of 22.8% to KWD46.3m, however, excluding the effects of new reporting standard IFRS16, growth was only 4.1% to KWD39.3m.
On a constant currency basis, the Agility Global Integrated Logistics (GIL) segment net revenues grew 5.1% to KWD275m. GIL’s overall Q1 net revenue margin was 23.8% against a 23.3% a year earlier. The net revenue increase was driven primarily by Ocean Freight and Contract Logistics, offsetting decreases in Project Logistics and Road Freight. However, excluding IFRS16 impact, GIL reported Q1 EBITDA of KD 6.8m, a 9% decrease compared to the same period a year earlier. The drop is attributable to costs associated with GIL’s digital transformation and commercial investments.
Air Freight grew across multiple trade lanes and sales channels, with Air Freight tonnage growing by 5.2% in Q1 2019.
Ocean Freight net revenue performance was driven primarily by yield improvement and TEU growth of 2.3%.
Contract Logistics performance was also strong, with the Middle East/Africa region (mainly Kuwait, Dubai, Egypt) as the key drivers of growth and improved margins.
Agility’s infrastructure group reported EBITDA of KWD32.5m (excluding IFRS 16 impact), an increase of 7.4% in Q1, on a revenue increase of 10.7% to KWD103.8m. Agility Logistics Parks (ALP), National Aviation Services (NAS) and Tristar were the main factors driving the group’s growth.
Tarek Sultan, Agility Vice Chairman and CEO, said: “We have a clear and consistent strategy that is translating into year-on-year improvements. We are also off to a good start in 2019. Agility is going to substantially invest in business transformation to drive operational excellence for the future”.
*$ = KWD3.29 / € = KWD2.90