How Agility weathered 2020
Kuwait-headquartered logistics group Agility has reported its results for 2020. While revenues for the year went up by 2.7% and reached KWD 1.6 billion (USD 5.3 billion), net profit declined by a significant 52.1% to KWD 41.6 million (USD 137.7 million). Ebitda, in turn, lost 15.9% to KWD 162.4 million (USD 537.6).
The pandemic took its toll: 2020’s results include one-time expenses of KWD 12.5 million (USD 41.4 million) relating to restructuring undertaken in response to Covid-19 and KWD 28 million (USD 92.7 million) in costs associated with the loss of Amghara land.
Vice chairman and CEO Tarek Sultan underlined that 2020 was a challenging year also for Agility, and outlined areas that Agility is prioritising for future investment: besides pushing the company’s life sciences capabilities for the distribution of vaccines, therapeutics, medical equipment and related products, Agility will take "strategic bets" on emerging technologies and companies, including its online logistics, last-mile and e-commerce portfolio through its Shipa group of companies. Sustainability, ESG initiatives and partnerships to reduce the environmental footprint are the third priority.
Agility's global integrated logistics (GIL)’s net revenue was KWD 283.7 million (USD 939.2 million), a 3.8% increase compared with 2019. Net revenue grew in contract logistics and air freight, while it decreased in ocean freight and fairs & events.
Volumes declined in both air freight and ocean freight in 2020 by 15.6% in air freight (tonnage) and 12% in ocean freight (teu), as a result of Covid-19’s impact on demand and economic contraction across industries and geographies.
However, higher yields in air freight, driven by continued demand for exceptional shipments, including many for life sciences customers and products, offset the decline in volume. Air freight net revenue grew 31.4% vs. the prior year. (sh)