Agility Reports KD 28 Million Third Quarter Net Profit

Numbers above are rounded

KUWAIT – November 15, 2023 – Agility, a long-term investor and operator in supply chain services, infrastructure, and innovation, today reported third quarter 2023 earnings of KD 28 million, or 10.99 fils per share, an increase of 123% over the same period in 2022. Q3 net profit was favorably affected by a one-off gain as a result of closing an interest rate hedge. Agility’s EBITDA increased 28.1% to KD 58.7 million and revenue grew 40.8% to KD 360.8 million.

For the first nine months of 2023, Agility’s net profit was KD 57.5 million, an increase of 39%, EBITDA increased 53.8%; and revenue grew 91.5% vs. the same period in 2022.

Q3 2023 Performance

Agility Vice Chairman Tarek Sultan said: “The results from our operating businesses continue to be positive, and a testament to the global growth strategy pursued by the company. As always, we will look for opportunities to drive returns and unlock value for shareholders. In terms of our investments segment, global equity markets paused and reversed in the third quarter of the year, and we can see that reflected in our results. Agility takes a long-term view of its investments.”

Agility Controlled Businesses 

Agility’s controlled businesses are the businesses it operates and owns majority stakes in, and whose performance is consolidated and reported through Agility’s profit and loss statement. In Q3, the combined EBITDA of Agility’s controlled businesses was KD 62 million on revenue of KD 360.8 million, increases of 40.8% and 32%, respectively, over Q3 2022.

Performance of the company’s-controlled businesses is reported under three groups:

Aviation Services

Menzies Aviation’s reported revenue of KD 175.2 million and EBITDA of KD 25.7 million, increases of 66% and 50.3% over the same period a year earlier.

Menzies has benefitted from the post-pandemic recovery. Passenger flights to and from Europe, the Americas and the Middle East are back to pre-pandemic levels, whereas traffic in Southeast Asia and Australia is steadily recovering. Volume in Africa remains below pre-Covid levels.

Fuel Logistics 

Tristar’s Q3 consolidated revenue grew 15.3% vs. Q3 previous year, and EBITDA increased 21.5%. Q3 performance was driven by Tristar’s diversified portfolio of services.

Other Controlled Businesses 

As a group, Agility’s other controlled businesses reported EBITDA of KD 18.8 million on revenue of KD 101.2 million, increases of 30.4% and 21%, respectively, over Q3 2022.

The main contributors were:

Agility Logistics Parks (ALP). ALP reported 7% third-quarter revenue growth. ALP is continuing to pursue its growth strategy by increasing and optimizing its existing land bank and developing new projects.

United Projects for Aviation Services Company (UPAC) reported a 1.4% increase in revenue for Q3. The increase was primarily attributable to an increase in revenue as the result of growth in air passenger traffic. UPAC anticipates that this positive trend will continue throughout 2023.

UPAC is a co-investor in Abu Dhabi’s $1.3 billion Reem Mall on Reem Island. Reem Mall opened to the public in February 2023. To date, 143 units are occupied and doing business, and almost 71% of gross leasable area (GLA) is committed. The mall is the region’s first, fully integrated omnichannel retail ecosystem with digital, e-commerce, and logistics capabilities. It brings together all consumer and retail services to ensure a seamless customer experience.

Global Clearinghouse Systems (GCS).  At GCS, Agility’s customs modernization and ports operation company, third-quarter revenue grew 11.6% vs. the same period in 2022.

Agility’s Investments 

Agility holds non-controlling minority stakes in a number of businesses, both listed and non-listed. In Q3, the carrying value of those stakes was roughly KD 1.6 billion. Global equity markets were not favorable in Q3, resulting in a negative effect on the value of Agility’s stakes in listed companies. As announced, Agility has entered into multi-year, funded equity collar agreements with several banks to protect the value of its largest, most material investment – its stake in global logistics provider and freight forwarder DSV. The collar agreement played an important role in protecting the value of Agility’s DSV stake in Q3.

Recap of Agility Q3 2023 Financial Performance

• Agility’s net profit was KD 28 million, an increase of 123%, and EPS was 10.99 fils.
• Agility’s EBITDA increased 28.1% to KD 58.7 million.
• Agility’s revenue increased 40.8% to KD 360.8 million and net revenue increased 46.2%.
• Agility enjoys a healthy balance sheet with KD 3.7 billion in assets. Net debt was KD 874.1 million as of September 30, 2023 (this excludes lease obligations). Reported operating cash flow was KD 143.7 million for the nine months of 2023, an increase of 213%.