Kuwait-based logistics provider Agility reported a 3.2% year-over-year increase in its revenue for the second quarter alongside an 8.1% increase in profit for the quarter, despite an airfreight market afflicted by “volume declines and shifts that have resulted from U.S.-China tariffs and import restrictions,” the company said in a statement on the results.
Across the company, Agility’s revenue rose to 396.3 million Kuwaiti dinars (US$1.3 billion) for the quarter and rose 2.5% to 775 million Kuwaiti dinars for the first half of 2019. Agility’s net profit rose 8.1% for Q2 to 21.6 million Kuwaiti dinars and 7.7% to 41.9 million Kuwaiti dinars for H1.
The company’s Global Integrated Logistics (GIL) unit reported a slight decline in gross revenue as a result of currency fluctuations, while net revenue increased 4% for GIL to 69.4 million Kuwaiti dinars, “mainly as a result of better oceanfreight and contract logistics performance,” the company said. Still, Agility’s airfreight operations were challenged alongside the rest of the global market, with net revenue for air declining 1.8% for Q2 with lower tonnage, even as Agility said the fall in tonnage was partially offset by higher yields. Tonnage fell 8% y-o-y.
Oceanfreight was a stronger performer thanks to better yields. Agility said oceanfreight was strongest in the Americas and Asia-Pacific regions, while contract logistics were strong thanks to the Middle East-Africa region generally, and the Kuwait and Egypt markets in particular.
Looking to the future of its GIL business, Agility said it will accelerate the roll-out of its global platform under its overall digital transformation strategy. Digitalization has been a major focus for the company, as demonstrated by its decision to invest US$100 million in digital logistics platform Shipa.com.
Agility also indicated its warehouse offerings helped drive revenue growth during the quarter. Agility Logistics Parks revenue grew 15% y-o-y during Q2, and the company expects to continue developing its warehouse facilities going forward. In Kuwait, Agility will look to develop new facilities utilizing its existing land bank, while in Saudi Arabia, the company has completed two of three 40,000 square meter warehouses it has planned for 2019. In Africa, Agility will soon complete the addition of new warehousing space in Ghana. The company said it will also add more space in other locations near the end of the year.Like This Post