Agility reports 8.1% net profit rise, but air freight revenue and tonnage fall

posted on 14th August 2019 by Justin Burns
Agility reports 8.1% net profit rise, but air freight revenue and tonnage fall

Kuwait freight forwarder and logistics provider Agility has reported net profit rose 8.1 per cent to KD 21.6 million in the second quarter of 2019.

Revenue was up 3.2 per cent to KD 396.3 million, while EBITDA (Earnings before interest, tax, depreciation and amortization) rose 31.2 per cent to KD 48.6 million.

For the first half of year, net profit was KD 41.9 million, 7.7 per cent, EBITDA was KD 95 million, an increase of 27 per cent and revenue was KD 775 million, an increase of 2.5 per cent.

Agility said the global air freight market continued to be “under pressure” and net revenue for the division decreased 1.8 per cent as the result of lower job volume and tonnage, although the decrease was offset in part by higher yields. In the second of 2019 tonnage fell eight per cent versus the same quarter in 2018.

The decrease was the result of weak market conditions and lower demand across industries and geographies, along with a return to more normal volumes following a spike in high-volume shipments a year earlier. The air freight market it said was affected by volume declines and shifts that have resulted from US-China tariffs and import restrictions.

Agility vice chairman and CEO, Tarek Sultan said: “We had a good Q2 despite the tough environment we operate in. GIL reported very good results and continues to implement its strategy to drive operational efficiency. Agility’s Infrastructure companies performed well, and key initiatives in each business unit are moving ahead according to plan.”