Despite the widespread slowdown, global logistics provider Agility is reporting first quarter earnings up 7.3 per cent as air, ocean freight and logistics are all up.
The Kuwaiti company posted a Q1 2019 revenue of KWD 378.8 million (USD 1.25 billion) up 1.9 per cent from a year earlier. EBITDA came in at KWD 46.3 million, an increase of 22.8 per cent.
Air Freight tonnage grew 5.2 per cent in Q1 2019, across multiple trade lanes and sales channels with very strong performance from strategic customers, Agility says.
Contract Logistics performance was strong in the quarter with revenue growth of 3.6 per cent. The Middle East/Africa region (mainly Kuwait, Dubai, Egypt) was the key driver of growth and improved margins, Agility says.
Ocean Freight net revenue performance was driven primarily by yield improvement and TEU growth of 2.3 per cent.
“Again a good start for Agility this year, though we are witnessing an environment where growth is slowing,” says Agility vice chairman and CEO Tarek Sultan. “We have seen good improvement across the board, and are accelerating our efforts to achieve our targets. On a reported basis, EBITDA increased 22.8 per cent and net profit improved 7.3 per cent.”
Sultan says Agility’s core logistics business, Agility GIL, continues making significant and important investments in digital transformation that will position it for long-term success and differentiation in the market. He adds that Agility continues also to invest in its Infrastructure group companies, each of which is pursuing a growth strategy.
National Aviation Services (NAS), what Agility says is the fastest growing aviation services provider in the emerging markets, grew revenue 3.5 per cent in the first quarter of 2019. “NAS continues on its strategic road map to expand and be the leader in Africa,” the company says.
NAS Cote d’Ivoire delivered double-digit growth; Egypt improved significantly with the launch of a new lounge in Cairo; and Tanzania and Morocco are delivering on their turn-around plans. NAS Uganda is slightly below projections due to a decrease in UN business and commercial flights but is expected to rebound.