| 28 September 2022, Wednesday |

Kuwait’s Agility reports sharp jump in 2021 net profit to $3.2bn

Agility, one of the major logistics businesses in the Middle East and North Africa, announced a substantial increase in full-year net profit in 2021, thanks to a one-time gain from the sale of its GIL logistics subsidiary to Danish firm DSV Panalpina, the company said.

According to Agility, net profit attributable to equity holders of the parent business for the period ended December 31 was 977.4 million Kuwaiti dinars ($3.21 billion), up from 41.57 million dinars in the same period in 2020.

Revenue increased by 22.1 percent year over year to 486.2 million dinars. Ebitda (earnings before interest, taxes, depreciation, and amortization) climbed by 13.2% to 109 million dinars.

“Agility’s performance in 2021 was outstanding. Our portfolio of companies performed well, reverting to pre-Covid profitability levels, in addition to a big one-time gain from the GIL sale,” Tarek Sultan, vice chairman of Agility, stated.

“As these businesses contribute to our core operations and Ebitda, we will strive to accelerate expansion in these areas.”

Following the coronavirus epidemic, global trade surged by 25% annually in 2021 to a record $28.5 trillion, according to a report released in February by the United Nations Conference on Trade and Development. In comparison to the previous year, it climbed by roughly 13%, according to the agency.

Goods commerce reached $5.8 trillion in the fourth quarter of last year, a new quarterly high. Trade in services reached $1.6 trillion for the same three-month period, slightly higher than pre-pandemic levels.

As of December 31, 2021, Agility’s total assets were valued 2.9 billion dinars, while its net debt was 324.4 million dinars, according to the firm.

Agility’s debt levels are projected to rise in accordance with the company’s growth needs, although Mr Sultan stated that the company “intends to keep borrowing within reasonable boundaries.”

“Looking ahead, despite challenging market conditions and geopolitical threats, we expect excellent performance from our continuing activities, with operating results for 2022 showing a minimum of 20% growth over 2021,” he added.

In 2021, Agility sold Global Integrated Logistics (GIL), its key logistics company, to DSV, the world’s third-largest freight and logistics provider, in exchange for 19.3 million DSV shares. Agility claimed a one-time gain of roughly 1 billion dinars and currently holds an 8% stake in DSV, making it the second-largest stakeholder.

The board of Agility intends to pay cash dividends of at least 20 fils per share in the years 2021, 2022, and 2023, beginning in 2022, according to the announcement.

The board has proposed a cash dividend payout of 20 fils per share in addition to 20% bonus shares for 2021. (20 shares for every 100 shares).

The cash and stock dividends must be approved by the general assembly, according to Agility.

In the face of supply chain disruption, growing demand for warehousing facilities in the Middle East, Africa, and South Asia drove revenue growth in 2021, according to Agility Logistics Parks.

  • The National News