CEO says sale of commercial logistics business to DSV Panalpina will give company more flexibility going forward.
Kuwait-based logistics major Agility has announced a 28.7 percent jump in first quarter net profit to KD12.6 million, while revenue increased 28.6 percent to KD485.5 million.
Tarek Sultan, Agility vice chairman and CEO, said the company’s recent decision to sell its core commercial logistics business to DSV Panalpina would give it more flexibility going forward.
He added that Agility’s long-term vision is to actively pursue growth in emerging markets and new technologies with the DSV transaction acting as a “catalyst to accelerate the pace”.
He said: “Agility started 2021 on a good note. Agility’s Global Integrated Logistics (GIL) business performed well, with favourable market conditions as well as cost controls playing an important role. Agility’s Infrastructure companies overall are showing strong signs of recovery from the effects of the global pandemic.”
Sultan (pictured below) added: “Going forward, Agility’s agreement with DSV Panalpina… allows us to retain the assets generating the bulk of our operating profit, while taking advantage of the scale, experience, operational excellence and possibilities offered by working with DSV, one of the industry’s top performers. It also creates the flexibility and resources to reposition the company for its next chapter of growth.”
In Q1, GIL’s improved performance was driven by favourable market conditions in freight forwarding and growth in contract logistics, along with strong cost controls.
Net revenue reached KD77.2 million, up 16.2 percent from Q1 2020 as a result of an increase in Freight Forwarding and Contract Logistics Net Revenue.
Agility’s Infrastructure group remained the main contributor to the group’s profitability with entities beginning to recover from downturns caused by the pandemic, the company said.
Sultan said: “Agility’s Infrastructure companies have been solid, stable performers over the years, with each company pursuing its own growth strategy. Entities impacted by the pandemic are recovering, and each company is continuing to explore growth opportunities.”
Source : Arabian Business