Agility, a leading global logistics provider, today reported second-quarter earnings of13.4 fils per share on net profit of KD 16.8 million, an increase of 12.8% and 12.1% respectively over the same period in 2016. Agility EBITDA grew 14% to KD 32.6 million. Revenue increased 10.9% to KD 342.1 million.First-half earnings of 24.9 fils per share and net profit of KD 31.4 million were up 12.1% and 11.6% respectively from first-half 2016. First-half EBITDA was KD 63.4 million, an increase of 15.6%. Revenue for the first half was KD 662.6 million, an increase of 9.1%. The results are in line with the company’s long-term guidance.

Tarek Sultan, Agility Vice Chairman and CEO, said: “Agility’s Infrastructure group was the primary driver of performance in Q2. Our industrial real estate business and aviation services company delivered particularly strong results. Revenue in our logistics business is growing because air and ocean volumes are increasing and contract logistics revenue is expanding, but rate pressure continues to affect profitability.”

 

Q2 2017 
(Million KD)
Q2 2016
(Million KD)
Variance
(%)
H1 2017
(Million KD)
H2 2016
(Million KD)
Variance
(%)
Revenue 342.1 308.5 10.9% 662.6 607.3 9.1%
Net Revenue 117.8 107.4 9.6% 288.6 209.5 9.1%
EBITDA 32.6 28.6 14% 63.4 54.8 15.6%
Net Profit 16.8 15 12.1% 31.4 28.1 11.6%
EPS(fils) 13.4 11.9 12.8% 24.9 22.2 12.1%

 

Agility Global Integrated Logistics (GIL)

Revenue for Agility Global Integrated Logistics (GIL), the company’s core logistics business, grew 9.6% in Q2, to KD 255.2 million. Air and ocean revenue grew, driven by volume growth of 14.7% and 12.9% in air tonnage and ocean TEUs respectively. These growth rates are above market average. Contract logistics revenue also grew, particularly in the Middle East and Asia Pacific, with the improved performance coming from a combination of new and existing warehousing facilities.

Net revenue in Q2 was flat compared to the same period a year ago, primarily due to significant yield degradation in freight forwarding because of capacity constraints and higher market rates. Net revenue margins contracted to 24.9%compared with 27.3% in Q2 2016. EBITDA decreased 5.8% to KD 9.1 million in Q2 for the same reason.

GIL continues to grow by committing to defined solutions, customer segments, sales productivity and efficient trade lane development. In addition, GIL is driving its transformation by building technology that enables efficiencies and boosts productivity for the customer and operations. GIL continues to be strongly focused on managing its costs in a disciplined manner.

Agility’s Infrastructure Companies

Agility’s Infrastructure group EBITDA rose 7.4%, to KD 27.5 million in Q2. Revenue grew 12.1% to KD 89.1 million. Agility Real Estate, National Aviation Services (NAS) and Tristar were the main factors in the group’s growth.

Agility Real Estate increased revenue 11.6% in Q2. It is developing new warehouses across the Arabian Gulf countries and Africa.

Tristar showed healthy revenue growth of 13.5% for the quarter, driven by new shipping contracts and its recent E-ships acquisition.

NAS grew its revenue by 17%. NAS continues to expand its presence in Africa and is performing well in Cote d’Ivoire and growing in Afghanistan.

UPAC revenue grew 6.5% as the company focused on its income-generating projects in Kuwait, where it manages commercial space at the Kuwait International Airport, Sheikh Saad Terminal, and Discovery Mall.

Recap of Agility Q2 Financial Performance

• Agility’s net profit increased 12.1% to KD 16.8 million in Q2 2017. EPS was 13.4 fils vs.11.9 fils a year earlier.

• EBITDA increased 14% to KD 32.6 million.

• Q2 revenue rose 10.9%, to KD 342.1 million and net revenue increased by 9.6%.

• GIL revenue grew 9.6% while EBITDA fell 5.8% (4.5% on a constant currency).

• Infrastructure’s revenue grew 12.1% to KD 89.1 million, compared with Q2 2016.

• Agility enjoys a healthy balance sheet with KD 1.6 billion in assets. Net debt position was KD 109 million as of June 30, 2017. Operating cash flow was (KD 4.3) million for the first half of 2017, due to the global settlement of the U.S. government food-supply contracts.

Summary

To achieve its 2020 EBITDA target of $800 million, Agility has two areas of focus. First, it is investing in its Infrastructure businesses in emerging markets. Second, it is continuing to improve the underlying fundamentals of its commercial logistics business, particularly in technology-driven transformation of its processes and development of online solutions for customers.

Sultan said continued earnings growth will be driven by operations and by a reduction in legal fees that we anticipate as a result of the settlement of the U.S. case. The impact of lower legal fees will be partially reflected in Q3 before realizing the full impact starting Q4, he said.

“Investments in Infrastructure businesses will limit free cash flow,” Sultan said. “The company is moving toward a ring-fenced net debt position to finance these investments in the future.”

Record number of entries offer riveting images and capture the rapid pace of change

JOHANNESBURG – Sept. 29, 2016 – Agility, a leading global logistics provider, today announced the winners of its Africa 2016 Photo Competition, a series of photographs that show how quickly Africa is modernizing, growing and even leading the way in new technology.
The annual contest, now in its second year, is a pan-Africa photography competition focusing on Africa’s rapid modernization. This year’s competition drew more than 2,500 photographs from professional and amateur photographers in 30 countries.
The winning images depicted a fisherman in a canoe on Lake Victoria on his laptop, a solar farm in Rwanda powering 15,000 homes, and the skyline of Harare, Zimbabwe.
A cash prize of $2,000 was awarded for each competition category. The winners were Stephen Simiyu, a photographer from Nairobi, Kenya (Technology); Henry Oliver Hakulandaba, an environmental consultant and photographer from Harare (Cities); and Esdore Hakizimana, a machine operator from Kigali, Rwanda (Industry). Simiyu also won the Grand Prize of $2,000 for his photograph of a fisherman using a laptop in a canoe on Lake Victoria, Uganda.
The winning photographs and the runners-ups were featured at a session at the United Nations General Assembly in New York earlier this month and will be shown at the Thomson Reuters Africa Summit 2016 in Cape Town in October. They will also be showcased in Forbes Africa, on CNBC Africa, and in Agility’s corporate magazine, Tradelanes.
Simiyu, the Grand Prize winner, said: “I know Africa is developing, and to show this, I needed an image that could tell that story in one picture. The competition really made me think about Africa – there’s nowhere like it.”
Hakulandaba, winner in the Cities category, said non-Africans are continually surprised by the pace of change in Africa. “Whenever I exhibit images of Harare or any other African city, there is always someone who says they never thought Africa has such development,” he said. “This competition is a platform to reach a wider audience about African development. It will help change perspectives of the continent’s potential.”
“The winning images speak eloquently about the historic change underway in Africa and the opportunities for Africans, African businesses and the world,” said Geoffrey White, CEO of Agility Africa. “As a company investing in the logistics infrastructure of the continent, we are proud to show the world powerful images that capture a more positive view of Africa and demonstrate the progress that has already been made, hopefully changing the perceptions of Africa in 2016.”
The competition was judged by an independent panel that consisted of Sneha Shah, Managing Director, Thomson Reuters Africa; Bronwyn Nielsen, Editor-in-Chief, CNBC Africa; and Salim Amin, Chairman of CameraPix and co-founder of Africa24 Media.

 

Technology category and grand prize winner: Stephen Simiyu, Kenya. 
JUNA, UGANDA (Source of the Nile River): For more than 20 years. Mr. Atika’s fishing business on Lake Victoria has helped him provide his family with a comfortable life. Now they have joined the global digital world.

 

 

Industry category winner: Esdore Hakizimana, Rwanda.
This solar power industry, situated in the 20 miles east Kigali, Rwanda, has a capacity of 10 megawatts. The energy it produces powers nearly 1500 homes. The solar farm has had a large impact on the people of Rwanda.

Cities category winner: Henry Oliver Hakulandaba, Zimbabwe
Western side of Harare CBD, just after rush hour

For more information:
Chris Pate
Office: +44 (0) 844 561 1416
Direct: +44 (0) 1273 200 527

 

About Agility

Agility brings efficiency to supply chains in some of the globe’s most challenging environments, offering unmatched personal service, a global footprint and customized capabilities in developed and developing economies alike. Agility is one of the world’s leading providers of integrated logistics. It is a publicly traded company with more than $4.1 billion in revenue and more than 22,000 employees in over 500 offices across 100 countries. Agility’s core commercial business, Global Integrated Logistics (GIL), provides supply chain solutions to meet traditional and complex customer needs. GIL offers air, ocean and road freight forwarding, warehousing, distribution, and specialized services in project logistics, fairs and events, and chemicals. Agility’s Infrastructure group of companies manages industrial real estate and offers logistics-related services, including e-government customs optimization and consulting, waste management and recycling, aviation and ground-handling services, support to governments and ministries of defense, remote infrastructure and life support.

Across Africa, Agility is developing a network of international-standard distribution parks to provide warehousing, reliable infrastructure and secure environments that offer consistent power and connectivity. Agility’s experience in emerging markets enables it to move cargo from anywhere in the world to any destination safely, on time and on budget for consumer goods makers, energy and mining companies, and other customers. In addition to logistics solutions, Agility also develops and manages fuel infrastructure and distribution, airport services and ground handling, remote site camps and catering, and customs modernization solutions across Africa.

Report shows GST will drive growth despite jolt from recent move to replace currency notes

BAAR, Switzerland – July 19 2017 – The shift to a unified national tax has set off a wave of change in India’s notoriously inefficient logistics sector as companies alter the way they store, move and account for goods, the Agility Mid-Year Emerging Markets Review finds.

India’s Goods and Services Tax (GST), introduced July 1, rolled more than a dozen state and federal levies into a single tax. The GST is already prompting logistics providers and their customers to consolidate warehousing, revamp road freight strategies, and invest in system upgrades to improve the efficiency of their supply chains.

The GST could cut logistics costs in India’s formal, organized logistics sector by 20% and provide a dramatic boost to the country’s surging economy, according to the Agility report, which also examines the impact of the UK’s Brexit on emerging markets.

Essa Al-Saleh, CEO of Agility Global Integrated Logistics, says the GST and other changes encourage long-overdue investment in Indian infrastructure. “The GST eliminates borders and checkpoints between India’s 29 states, paving the way for big efficiency gains,” Al-Saleh says. “Companies can carry less inventory, move to hub-and-spoke warehousing, take advantage of long-haul trucking, and look to third-party logistics providers to improve operations and save.”

The Agility report was prepared by Transport Intelligence, a leading analysis and research firm for the logistics industry. The report indicates that India’s overnight decision in late 2016 to introduce new bank notes sapped economic growth and curtailed activity in the country’s massive, cash-based informal sector of small merchants, truckers and others. But it concludes that the impact of “demonetisation” will be short-lived.

In its look at Brexit, the Agility report highlights hurdles faced by the UK in its effort to “cut and paste” existing European Union trade rules into an exit agreement with the EU. The more difficult the terms of a UK-EU divorce, the more likely the UK is to seek ambitious new trade deals with emerging markets countries, particularly Commonwealth countries in Southeast Asia and Africa, the report finds.

Brexit leaves key emerging markets exporters – South Africa, Kenya, Turkey and others – exposed because the value of the pound has declined and the UK economy is expected to be smaller as a result of the UK’s departure from the EU.

The Agility report also suggests that emerging markets countries using the UK as a gateway to Ireland and other EU countries will need to find new routes to those markets. UK exports to the EU could face burdensome checks and customs procedures unless the UK hews to EU product standards and British transporters conform with EU transport rules.

Agility Mid-Year Emerging Markets Review: www.agility.com/2017index

Agility partners with Transport Intelligence to produce the annual Agility Emerging Markets Logistics Index, a ranking of the world’s 50 leading emerging markets and a survey of more than 800 global logistics industry professionals.

Agility today announced a settlement in the criminal case involving the U.S. government food-supply contracts that the company held from 2003 to 2010 (the “Prime Vendor Contracts”).

In the criminal portion of the case, Agility agreed to plead to a misdemeanor in connection with a single invoice valued at $551 (KD 167). The misdemeanor is a minor offense, unrelated to any of the original criminal charges, requiring Agility to pay a maximum of $551 (KD 167) in restitution, but no criminal fine.

Agreement to settle the criminal portion of the case is conditional upon Agility signing a separate agreement with the U.S. Department of Justice resolving the pending civil case captioned United States of America, ex rel, et al. v. the Public Warehousing Company, et al., Case No. 1:05-cv-02968-TWT. Any agreements will be subject to final District Court approval.

A settlement, once finalized, will resolve all outstanding criminal issues with the U.S. government in connection with the Prime Vendor contracts for Agility, its affiliates, employees, directors, and officers. The civil proceedings with the U.S. Department of Justice in connection with the Prime Vendor Contracts remain pending.

Separately, Agility also entered into settlement agreements with the Defense Logistics Agency resolving all pending and potential administrative claims between Agility and DLA involving the Armed Services Board of Contract Appeals, and resolving Agility’s suspension from federal government contracting.

The DLA agreements are conditional upon Agility signing a further settlement agreement with the U.S. Department of Justice resolving the pending civil case.

These agreements, once made effective, will allow Agility to resume pursuit of new U.S. government contracts. Under the terms of the settlement, the U.S. government has agreed to remove Agility and its subsidiaries and affiliates from the list of suspended companies on its System for Award Management (SAM) database, formerly known as the Excluded Parties List System (EPLS), within 60 days.

For more information, contact [email protected]

New logistics partner for prestigious Porsche Motorsports racing series

BAAR, Switzerland – May 18th 2017 – Agility, a leading global logistics provider, has signed a three-year logistics partnership agreement with Porsche Motorsports for the seven-weekend Porsche Carrera Cup Deutschland (PCCD) racing series.

Agility is active in a number of industry verticals and the automotive sector is a key area of focus, with the company already serving leading automakers, parts manufacturers and after-market suppliers in Germany and around the world. Agility works with automotive customers to improve visibility, shorten delivery times, cut costs, manage supplier networks and increase efficiency.

“Porsche Motorsports and the teams competing in various series have exacting logistics requirements. This partnership with the PCCD gives us an opportunity to demonstrate our understanding of the special demands of automotive logistics and our ability to deliver under the pressure of race conditions,” said Essa Al-Saleh, CEO of Agility Global Integrated Logistics.

Dr. Frank Steffen Walliser, Porsche Vice President Motorsport & GT-Cars, said, “The German Carrera Cup is one of the most tradition-steeped brand trophies in the world and we welcome Agility to join our select group of partners. We look forward to a long and successful partnership.”

The 2017 edition of the PCCD series opened May 5-7 at Hockenheim and features Porsche 911 GT3 Cup vehicles in 60-kilometer Saturday sprints and 80-kilometer Sunday races.

Financial Highlights

 

Q1 2017
(Million KD)
Q1 2016
(Million KD)
Variance
(%)
Revenue 320.5 298.8 +7.3%
Net Revenue 110.8 102 +8.6%
EBITDA 30.8 26.2 +17.4%
Net Profit 14.6 13.1 +11.1%
EPS (fils) 12.7 11.4 +11.4%

 

KUWAIT – May 10, 2017 – Agility, a leading global logistics provider, today reported earnings of 12.7 fils per share on net profit of KD 14.6 million, an increase of 11.4% over the same period in 2016.

Agility reported EBITDA of KD 30.8 million, a 17.4% increase, along with revenue of KD 320.5 million, a 7.3% increase over Q1 2016. The results represent the fifth consecutive quarter of double-digit growth in Agility’s EBITDA, in line with the company’s long-term guidance.

“Our performance has been driven by strong growth in our Infrastructure companies in emerging markets and by the steady progress we have made in improving the underlying fundamentals of our commercial logistics business,” said Tarek Sultan, Agility Vice Chairman and CEO. “We remain on track to achieve our target of $800 million in EBITDA by 2020.”

Agility Global Integrated Logistics (GIL)

Revenue for Agility Global Integrated Logistics (GIL), the company’s core logistics business, grew 6.5% in Q1, to KD 240.3 million. Revenue growth was driven by all products. Air freight volume grew 16% and ocean freight volume grew 12.5% this quarter, both outpacing the market average.

GIL net revenue grew 2% in Q1, increasing in most products and showing a 9% increase in contract logistics over the same period a year earlier. Net revenue margins, 26% in Q1 2016, declined to 25%, mainly because of pressure on rates and tightening capacity on major trade lanes.

GIL EBITDA fell by 12% (7.4% on a constant currency basis) for the quarter, despite revenue and net revenue growth. GIL’s Q1 EBITDA margins were 2.4% vs. 2.9% in Q1 2016. EBITDA decreased because of increased currency fluctuations; ongoing investments in technology development; and increased investment in solutions and growth opportunities in its core markets and verticals.

“GIL is winning new business and containing its costs by driving productivity increases. We believe our strategic focus on trade lanes, solutions and sales excellence will lead to continued growth in freight forwarding volumes this year,” Sultan said.

GIL is investing in profitable and growing contract logistics businesses. New facilities are coming online in the Middle East and Singapore over the course of 2017. GIL is also investing in transforming its business through technology and further strengthening its online solutions for customers.

Agility’s Infrastructure Companies

Agility Infrastructure group EBITDA rose 24.1%, to KD 27.4 million, on revenue growth of 8.6%. Agility Real Estate and Tristar are the main drivers behind the growth.

Agility Real Estate, the largest contributor in the group, increased revenue by 10.8% in Q1. Agility Real Estate is the largest private owner of industrial real estate in the Middle East and Africa, where it is developing new facilities. In Kuwait, Agility is developing more than 900,000 sqm. of warehousing over the next three years.

Tristar is a fully integrated liquid logistics company serving the downstream oil and gas industry with surface transport, ocean shipping, dangerous goods warehousing, fuel farm management and other services. Tristar reported healthy growth in this quarter, driven by new shipping business complimented by its recent E-ships acquisition. Tristar is focused on diversifying its customer base and expanding its shipping business while increasing its productivity.

National Aviation Services (NAS) has become one of the largest ground handling and airport services companies in emerging markets. With a leading position in Africa, NAS will continue to focus primarily on the continent for growth. NAS’s Q1 revenue growth was driven by its Cote D’Ivoire operations, which saw double-digit increases in flight volumes. NAS is also launching operations in Morocco and working on improving yields in its Kuwait business.

UPAC, a publically-listed commercial real estate company, announced earnings of KD 2.2 million, a 14.5% increase over the same period in 2016. UPAC revenue increased 7.4% to KD 3.5 million. UPAC continues to improve its managed projects at the Kuwait airport and Discovery Mall, increasing footfall and demand for space, and achieving 100% utilization. The Reem mega-mall in Abu Dhabi, a planned retail, entertainment, and dining destination of more than 2 million square feet, is key to UPAC’s future growth and development.

Recap of Agility Q1 Financial Performance

Summary

Agility is entering an investment and growth phase and expects:

​​​​​​​

ACCRA, Ghana – October, 19, 2016 – Agility, a leading global logistics and infrastructure provider, has opened a distribution park near Ghana’s main port, the first of a network of logistics parks it intends to build across Africa, bringing world-class warehousing and logistics capabilities.

Tenants at the 45-acre Ghana Agility Distribution Park in the Tema Port Free Trade Zone Enclave include multinationals entering the West African market and small and medium-size Ghanaian companies using the park to expand their operations in light manufacturing and export and import.

Agility is developing distribution parks in Cote D’Ivoire, Tanzania, Nigeria, Mozambique and Angola. It has additional sites available in Senegal, Mauritius and Cameroon.

“One of the biggest constraints to companies starting to do business in Africa is the lack of quality logistics and infrastructure,” said Geoffrey White, CEO of Agility Africa. “This is inhibiting the growth of trade, imports, exports and manufacturing.”

The Agility parks provide 24-hour security, reliable power and connectivity, and international-standard warehousing and logistics services. In addition, Agility develops “Build-to-Suit” options for customers to meet their specific requirements.

“Agility is a world leader in developing logistics parks around the globe. We are committed to using this in-depth experience to establish a network of quality facilities in Africa,” White said. “By developing and leasing much-needed warehousing, the Agility Distribution Parks help companies operate in Africa with the reliable, modern and secure infrastructure they need to grow their business, allowing them to access new markets without committing large amounts of capital.”

To meet demand, Agility is building seven more warehouses at the Ghana park in a second phase of development. It is also finalizing proposals for several large Build-to-Suit facilities at the Ghana park, each tailored to specific customer requirements with sizes ranging from 5,000 sqm to 25,000 sqm.

Agility Distribution Parks meet international environmental standards and use eco-friendly construction materials. Agility used energy efficient roof and side insulated panels; wind-driven roof fans; skylights for natural lighting; LED and energy-saving bulbs; and solar-powered street lights. The site will recycle paper, plastic, metal, and carton waste. It provides eco-friendly waste management services and carbon footprint reporting.

The 2016 Agility Emerging Markets Logistics Index ranked Ghana as one of the most promising markets in Africa. Africa’s growing middle class and consumer spending were identified as the most significant drivers for Africa’s growth in the Index, an annual ranking of the world’s most attractive emerging markets countries.

To provide training in management and logistics-related skills, Agility has developed leadership programs for Africa that are available to local employees and university graduates. Trainees will have the opportunity to gain experience working with Agility in Ghana and around the world.

“Agility is investing in the future of Africa by funding and developing projects that build long-term sustainable businesses. The Ghana distribution park is just the first step,” White said. “We are proud to be supporting Ghana’s economic growth, and the economic growth of Africa as a whole.”

About Agility

Agility brings efficiency to supply chains in some of the globe’s most challenging environments, offering unmatched personal service, a global footprint and customized capabilities in developed and developing economies alike. Agility is one of the world’s leading providers of integrated logistics. It is a publicly traded company with more than $4.1 billion in revenue and more than 22,000 employees in over 500 offices across 100 countries. Agility’s core commercial business, Global Integrated Logistics (GIL), provides supply chain solutions to meet traditional and complex customer needs. GIL offers air, ocean and road freight forwarding, warehousing, distribution, and specialized services in project logistics, fairs and events, and chemicals. Agility’s Infrastructure group of companies manages industrial real estate and offers logistics-related services, including e-government customs optimization and consulting, waste management and recycling, aviation and ground-handling services, support to governments and ministries of defense, remote infrastructure and life support.

Across Africa, Agility is developing a network of international-standard distribution parks to provide warehousing, reliable infrastructure and secure environments that offer consistent power and connectivity. Agility’s experience in emerging markets enables it to move cargo from anywhere in the world to any destination safely, on time and on budget for consumer goods makers, energy and mining companies, and other customers. In addition to logistics solutions, Agility also develops and manages fuel infrastructure and distribution, airport services and ground handling, remote site camps and catering, and customs modernization solutions across Africa.

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