Agility Reports 19% Q2 Earnings Increase

KUWAIT – August 6, 2018 – Agility, a leading global logistics provider, today reported second-quarter earnings of 13.8 fils per share on net profit of KD 20 million, an increase of 18.7% over the same period in 2017. Agility EBITDA grew 13.6% to KD 37.1 million. Revenue increased 12.3% to KD 384.2 million.

First-half earnings of 26.9 fils per share and net profit of KD 38.9 million were up 24%. First-half EBITDA was KD 74.8 million, an increase of 18%. Revenue for the first half was KD 756 million, an increase of 14.1%.

Tarek Sultan, Agility Vice Chairman and CEO, said: “Our second quarter results were in line with expectations and consistent with the previous growth trend the company has been seeing. Agility’s Infrastructure companies performed well, as did our logistics business, which witnessed another quarter of volume and revenue growth despite margin pressure.”

Agility Global Integrated Logistics (GIL)

Global Integrated Logistics (GIL) business strategy of effective trade lanes development, productivity optimization and defined tailor-made solutions to customers continued to generate favourable results. GIL gross revenue grew 13.4% to KD 289.3 million. Net revenue rose 5% to KD 66.7 million, primarily due to growth in Freight Forwarding and Contract Logistics. The respective revenue and net revenue growth rates for the first half were 14.5% to KD 567.4 million and 6.4% to KD 131.3 million.

Air freight continued its strong performance in Q2, driven by solid volume growth of 14% and stable yields compared to the same period of last year. Air freight net revenue grew 21.9% in Q2 and 20.3% in the first half. Ocean freight had consistent volume growth but with lower yields. In Q2, container volume increased 8.2% vs. Q2 2017. Ocean freight net revenue grew 7.4% in Q2 and 7.3% in the first half.

Regionally, Air freight and Ocean freight performance was strongest in the Americas, Asia Pacific and Europe.

Contract Logistics continued its steady growth, primarily in the Middle East and Asia Pacific, as a result of new business and effective utilization of facilities. Contract Logistics net revenue grew 3.2% in Q2 and 4.5% in the first half.

GIL’s net revenue margin was 23% in Q2, down from 24.9% a year earlier due to yield degradation in Road freight and Project Logistics, primarily in the Middle East and Europe. GIL’s EBITDA reached KD 9.3 million in Q2, and its EBITDA margin was 3.2%, slightly lower than 3.6% in Q2 2017. In the first half, EBITDA grew 13.3% to KD 16.8 million. EBITDA margin in the first half remained flat at 3% vs. the same period in the previous year.

GIL is accelerating its digital transformation to increase the efficiency of its business processes, gain business insights, develop innovative logistics solutions, differentiate its products and better connect to its customers,

Agility’s Infrastructure Companies

Agility’s Infrastructure group EBITDA rose 16.8% (after adjusting for the impact of the US government settlement in 2017), to KD 31.3 million in Q2. Revenue grew 9.5% to KD 97.5 million. For the first half of 2018, EBITDA grew by 20.1% and revenue by 14.8%. All entities in the group contributed to this performance.

Agility Industrial Real Estate continues to improve the efficiency of its operations in Kuwait. It also concluded its Phase I development in Riyadh of 80K sqm of warehousing capacity and started with Phase II, for which an additional 120K sqm will be delivered next year. Expansion in Africa is progressing according to plan as Agility Industrial Real Estate moves ahead with its development in Ghana and prepares to start new developments in Mozambique, Nigeria and Cote d’Ivoire.

Tristar, continues to expand its fuels operation with existing customers. Tristar is also investing and diversifying its operations by expanding in shipping and broadening its geographic reach.

National Aviation Services (NAS) operations in Kuwait are generally stable. NAS operations in Cote d’Ivoire and Afghanistan continue to be positive contributors to the group. In addition, NAS’s new operation in Uganda has contributed significantly in 2018. Operations in Tanzania and Morocco continue to bear down on our group, but Tanzania is poised for a turnaround in 2018 and has numerous opportunities in the pipeline.

GCS, a company specialized in digitizing customs, showed improved performance in the second quarter. GCS manages all customs’ activities at ports of Kuwait and aims to enhance customs modernization through its services.

UPAC revenue and profits increased during the second quarter. Operations at Kuwait Airport and other prominent locations in Kuwait continue to drive growth. In addition, construction of Reem Mall in Abu Dhabi is moving forward according to plan. 

Recap of Agility Q2 Financial Performance

• Agility’s net profit increased 18.7% to KD 20 million in Q2 2018. EPS was 13.8 fils vs.11.6 fils a year earlier.
• Agility’s Q2 EBITDA increased 13.6% to KD 37.1 million.
• Agility’s Q2 revenue rose 12.3%, to KD 384.2 million and net revenue increased by 5.5%.
• GIL Q2 revenue grew by 13.4% to KD 289.3 million.
• Infrastructure’s Q2 revenue grew 9.5% to KD 97.5 million.
• Agility enjoys a healthy balance sheet with KD 1.7 billion in assets. Net debt position was KD 130.7 million as of June 30, 2018. Operating cash flow was KD 29.2 million for the first half of 2018.

About Agility

Agility is one of the world’s leading providers of integrated logistics. It is a publicly traded company with more than $4.6 billion in revenue and more than 22,000 employees in over 500 offices across 100 countries. Agility 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 customs digitization, waste management and recycling, aviation and ground-handling services, support to governments and ministries of defense, remote infrastructure and life support.

For more information about Agility, visit Agility.com
Twitter: twitter.com/agility
LinkedIn: linkedin.com/company/agility
YouTube: youtube.com/user/agilitycorp

 New service uses technology to bring efficiency to trucking market

RIYADH, Saudi Arabia – July 3, 2018 – Homoola today announced the formal launch of its digital load-matching service in Saudi Arabia, where it will bring new efficiency to road freight by using technology to pair shippers and trucking companies.

Homoola’s load-matching technology addresses the pain points felt by both shippers and carriers.  It gives shippers access to capacity at times of peak demand and allows them to optimize the efficiency of their shipments at other times. Homoola prevents carriers from driving empty miles or sitting idle waiting for cargo. Agility is a key investor in Homoola.

Ziyad Al Homaid, Homoola co-founder and CEO said, “Homoola’s goal is to build a platform matching multiple carriers and drivers, based on cost, quality of service and terms of payment.”

Homoola has been operating in Saudi Arabia since January. Its platform gives trucking companies, including smaller carriers, access to a larger pool of customers and allows them to make more efficient use of their fleets. Shippers can select from among multiple trucking options that meet their standards for quality and consistency.

The development of Homoola is consistent with Saudi Arabia’s Vision 2030 economic objectives. Among the goals outlined as part of Vision 2030, the Saudi government seeks to diversify the economy, grow the private sector, create new jobs, improve its competitiveness, become a logistics leader, increase non-oil exports, and draw foreign investment.

“Homoola allows logistics and trade to be conducted more efficiently and effectively – in keeping with the Kingdom’s 2030 vision,” Al Homaid said.

Asim Al Rajhi, Homoola co-founder and COO, said: “The surge of transactions delivered to customers over the past few months reflects the market’s demand for Homoola. Our customers are telling us that they like the real-time and accurate updates on pricing, and also the ability to track their goods at all times.”

Agility Ventures, the corporate venture arm of global logistics giant Agility, is a key investor in Homoola and has worked closely with the Homoola team on the platform’s development and operational launch. Agility Ventures partners with promising startups that are championing technologies that can help build faster, more secure and more sustainable supply chains. Agility Ventures has invested in digital start-ups that bring new efficiency to e-commerce fulfillment and last-mile delivery for businesses and consumers.

Henadi Al-Saleh, Chairperson of Agility and Head of Agility Ventures, said: “Customer expectations and demands are constantly changing, as are their operating models. Homoola will offer a real-time view of fleets, as well as insights into market supply and demand in the region. Agility will continue to innovate in partnership with startups like Homoola.”

For more information about Homoola, visit https://www.homoola.com/

About Agility

Agility is one of the world’s leading providers of integrated logistics. It is a publicly traded company with more than $4.6 billion in revenue and more than 22,000 employees in over 500 offices across 100 countries. Agility 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 customs digitization, waste management and recycling, aviation and ground-handling services, support to governments and ministries of defense, remote infrastructure and life support.

For more information about Agility, visit Agility.com

Twitter: twitter.com/agility
LinkedIn: linkedin.com/company/agility
YouTube: youtube.com/user/agilitycorp

Facility aimed at fashion, retail customers more than doubles Agility’s space

GOTHENBURG, Sweden – June 28, 2018 – Agility, a leading global logistics provider, has opened a new, 21,000-square-meter warehouse in Gothenburg, Sweden, increasing total space in the country to 45,000 square meters.

The new warehouse will primarily serve fashion and retail customers, while Agility’s second warehouse, also located in Gothenburg, will continue to serve industrial manufacturing customers.

The new facility has 36 ports, allowing for a steady flow of containers, and has a railway line that runs directly into the facility. The line is connected to the main train system, making it possible for Agility to handle track-bound cargo directly. The new warehouse also features 30,000 square meters of ground suitable for reloading and storing containers and trailers.

In addition to warehousing space, the facility is also suitable for hub activities and terminal handling. With a dedicated 2,000-square-meter area for pick-and-pack services, the warehouse is well-suited for fashion and retail customers.

Mats Nordin, Managing Director for Agility Area Nordic, said, “With this new facility, we are able to continue expanding our service offerings to our air, ocean and road freight customers in Sweden, as well as in Denmark, Norway and Finland. We are committed to providing our customers with the highest level of services, and are well-placed to help organizations with their logistics requirements.”

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 $4.6 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.

For more information about Agility, visit www.agility.com

Twitter: twitter.com/agility

LinkedIn: linkedin.com/company/agility

YouTube: youtube.com/user/agilitycorp

CAIRO, Egypt – 26 June 2018 – Admiral Mohab Mamish, Chairman of the Suez Canal Authority and Chairman of the Suez Canal Economic Zone (SCZONE), along with Mr. Tarek Sultan, Vice Chairman and CEO of Agility, a leading global logistics provider, today signed a Protocol of Cooperation, establishing a logistics center in East Port Said, one of the most important strategic sites on the Mediterranean Sea.

Under this protocol, Agility will develop a hub with international standard logistics infrastructure to enhance the importing and warehousing of raw materials, as well as the export and distribution of intermediate and final goods through the Suez Canal Ports.​ The logistics hub is part of the current expansion of East Port Said.

The company will also provide world-class solutions for Egyptian customs, including the modernization and automation of the customs processes. This will improve the speed at which commodities are moved and strengthen the supply chain in a fast and secure manner. These improvements, in turn, will help decrease supply chain costs for the industrial operations across the various areas of the economic zone.

“The establishment of the East Port Said project is in line with the Egypt 2030 Vision. It also achieves Egypt’s development goals in creating an integrated sustainable economic growth through the creation of new job opportunities and enhancing Suez Canal Zone status as a commercial and industrial hub.” Admiral Mohab Mamish said

Admiral Mamish added that the protocol of cooperation with Agility is one of the significant steps in the Economic Zone’s development plan, and particularly the development of East Port Said, noting that Agility is one of the world’s largest logistics companies operating in the Arab region.

The Chairman of the Suez Canal Economic Zone announced that the protocol aims to study the investment in the development and marketing of both the logistics and industrial areas. It also includes the development of a ‘green’ logistics hub for value-added services, in addition to applying advanced customs technology solutions that facilitate trade.

Mr. Tarek Sultan, Vice Chairman and CEO of Agility said, “Egypt’s prominent location allows access to strong regional markets and trade routes, making it an ideal site for a regional distribution hub. Given the global demand for access and presence in the continent, Agility has continuously invested in Africa. Establishing an integrated industrial and logistics hub in partnership with SCZone, as well as providing modernized, automated customers services, matches Agility’s Africa strategy and further highlights Egypt’s role as a key regional player.”

“Being present in the Suez Canal Economic Zone and, in particular, working in the East Port Said area will give companies access to world-class infrastructure as well as fast, easy and efficient logistics and customs services in terms of time and cost,” added Sultan.

Admiral Abd El Kader Darwish, Vice Chairman of the Suez Canal Economic Zone for the Northern Sector, said that the establishment of a logistics center in East Port Said is set to provide logistical and technological solutions for investors in the region. It will also provide a secure electronic customs system to facilitate the movement of goods in a safe manner that will in turn contribute to more job opportunities in East Port Said.

Darwish added that the protocol also includes studying the possibility of establishing a company between the Economic Authority and Agility. He pointed out the two-phase implementation plan between the two parties includes a first phase to prepare the feasibility studies for the development of a logistics center and the provision of customs technology services for period of eight (8) months.

The second phase includes the preparation of the detailed master plan for the logistics center and its stages, as well as a detailed technical and financial studies to provide technology services for a period of six (6) months. Then the  third phase will include the establishment of the joint company in a period of six (6) months.

In Egypt, Agility manages 43,000 sqm of warehouse space and 30,000 sqm of open yard storage. In 6th October City, the company manages more than 60,000 pallet positions with material handling lifts capable of transferring goods to 67 loading docks. Agility offers superior solutions across Egypt to move time-sensitive cargo and online tracking of goods transported overland or through major air and sea ports through the company’s port of call license which gives it a status equivalent to shipping agencies.

About Agility

Agility is one of the world’s leading providers of integrated logistics. It is a publicly traded company with more than $4.6 billion in revenue and more than 22,000 employees in over 500 offices across 100 countries. Agility 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 customs digitization, waste management and recycling, aviation and ground-handling services, support to governments and ministries of defense, remote infrastructure and life support.

For more information about Agility, visit Agility.com
Twitter: twitter.com/agility
LinkedIn: linkedin.com/company/agility
YouTube: youtube.com/user/agilitycorp

Agility Egypt is pleased to announce a range of new solutions to customers shipping from, to, or transiting in Egyptian ports. New shipping services include:

• Vessel chartering for all types of cargo
• Port call and protective agent covering all Egyptian ports
• Fully authorized Shipping Agent
• Handling and all husbandry services
• Suez Canal transits agent services

For more information, please contact the Agility shipping team at AgilityEgyptShipping@agility.com.

Small and medium-size businesses that have struggled for equal footing in the global economy are increasingly looking to cross-border trade for growth, seeing technology as a way past obstacles in shipping and compliance, according to new research from Shipa Freight. [Read more]

We are pleased to announce that Agility Amsterdam and Rotterdam have been awarded with the Good Distribution Practice (GDP) certification.

The certification was carried out by AJA Registrars Europe, a worldwide operating registration company accredited by UK Accreditation Service as an independent third-party assessor.

The GDP deals with the guidelines for the proper distribution of medicinal products for human use. GDP is a quality warranty system, which includes strict requirements for the purchase, receiving, storage and transportation of medicines intended for human consumption.

For more information about Agility’s Life Science services, please visit www.agility.com/pharma.