Agility caps 2020 with net profit of US$138 million
KUWAIT: Leading global logistics provider, Agility, capped 2020 with a net profit of KD41.6 million (about USD138 million), or 21.73 fils per share, a decrease of 52.1% from 2019 and the company’s Board of Directors recommended a cash dividend distribution of 10% (10 fils per share) along with 10% bonus shares to investors.
The company explained revenue for the year reached KD1.6 billion (about USD5.3 billion), an increase of 2.7%, and EBITDA reached KD162.4 million, a decrease of 15.9%. The 2020 results include one-time expenses related to restructuring that took place in response to the COVID-19 pandemic for KD 12.5 million and KD 28 million expense associated with the loss of Amghara land.
The company’s full-year results and fourth-quarter results in particular, were affected by one-off expenses related to the loss of Amghara land and COVID-19 net restructuring expenses. Before accounting for those expenses, Agility would have reported 48.6% EBITDA growth in the fourth quarter, vs. Q4 2019, and 5.1% growth on a full-year basis.
Agility Vice Chairman and CEO Tarek Sultan said 2020 was a challenging year for most businesses around the world, including Agility.
“We are proud of the steps we took to keep our front-line workers safe, and keep cargo moving for our customers in the face of one of the greatest supply chain disruptions the world has ever seen. We also stayed committed to ongoing pro-bono support for government, humanitarian, and education partners that are coping with the global pandemic,” Sultan said.
Sultan said Agility is prioritizing its life sciences capabilities for distribution of vaccines, therapeutics, medical equipment and related products for future investment. It’s also making strategic bets on emerging technologies as well as boosting its sustainability and ESG initiatives and partnerships.
Sultan said Agility must remain agile, flexible and ready to adjust to ongoing global economic uncertainty in 2021. “Our goal is not only to weather the storm, but to emerge stronger than ever from this crisis,” he said.
Agility noted it has a healthy balance sheet and is able to meet its liquidity requirements. Local, regional and international banks have recently extended the company $1.1 billion in 3 and 5-year credit facilities. In addition, the company’s focus on working capital management across the board in the midst of tough market conditions has yielded positive results. Operating cash flow for the year was KD 177.8 million, a 17.3% increase over 2019.
