Possible M&A target Agility reports double-digit profit growth in 2018
Just days after Switzerland-based Panalpina made an offer to purchase Agility Logistics, the Kuwaiti forwarder released its end-of-the-year financial results for 2018, which show that it maintained impressive margins at both the full year and the quarterly level.
Agility said on Friday that it was considering Panalpina’s offer however, negotiations are still in the preliminary stages.
Comparing Q4 2018 to the same period in 2017, net profit for Agility rose by 15.1 percent to about US$73.1 million, and earnings before interest, taxes, depreciation and amortization (EBITDA) increased 8.4 percent to $134.3 million, year-over-year.
Looking at the company’s full-year performance, net profit rose 18.4 percent to $266.9 million and EBITDA increased by 14.5 percent to $509.5 million compared to 2017.
Agility said better airfreight yields were a boon to revenue during 2018, naming fashion, industrial and high-tech as major industries of its airfreight-utilizing client-base. However, it noted that the U.S.-China trade dispute did affect the segment’s growth during the fourth quarter.
Its traffic figures were not included in the release, which are likely coming later this week, when Agility will hold a webcast about its Q4 2018 earnings.
Vice chairman and CEO Tarek Sultan said the company will continue to invest in warehousing and industrial facilities across the Middle East and Africa, as well as its digital endeavor, “Shipa,” an online booking platform that launched in December of 2018.
