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Agility Global Integrated Logistics (GIL) reported a 35.2% increase in third-quarter ebitda on the back of “significant cost reductions” and increased revenues in air freight and contract logistics.
Its third-quarter ebitda was recorded at KD18.5 m ($60.5m), while net revenue for the period was KD71.4m, representing 5.1% year-on-year growth. GIL gross revenue was KD305.7m, a 7.3% increase on same period in 2019.
However, the increases in air freight and contract logistics were offset by revenue declines in ocean freight, its fairs & events logistics arm (“hurt significantly by Coronavirus-related event cancellations”) and project logistics.
Air freight net revenue grew by 39.1% year on year, “driven by continued demand for exceptional shipments related to the life sciences vertical”, it said, while ocean freight earnings declined 14.5%, “as a result of volume and yield compression”.
However, both divisions saw volumes decline, due to “demand and production disruption arising from Covid-19 as well as capacity constraints”.
Meanwhile, contract logistics saw 12.7% year-on-year revenue growth, mainly in the Middle East where there was strong performance at new facilities in Kuwait, Saudi Arabia and the UAE.
However, GIL attributed profit growth to a range of cost reduction measures introduced at the outbreak of the pandemic in the first quarter.
At group level – which includes its infrastructure business – Agility reported an ebitda decline of 1.9% to KD46.5m, and flat revenue of KD403m, as some of its infrastructure operations struggled during the pandemic.
Tarek Sultan, Agility vice chairman and CEO, explained: “While we – like many businesses – are still feeling the impact of Covid-19, we are also seeing recovery across most of our business lines, albeit with each business recovering at a different pace.
“Agility benefited from early and decisive measures taken to contain costs and preserve cash, and is well poised to navigate what is likely to continue to be a volatile market for some time.
“Agility remains committed to investing in technology that will transform our industry, expanding our digital logistics offerings, and bringing world-class warehousing infrastructure to fast-growing emerging markets,” he added.