Agility Q2 net profit down 12% on higher interest outgo
Revenue more than doubled to KD328 million and EBITDA increased 63% to KD60.5 million
Agility, a long-term investor and operator in supply chain services and infrastructure, reported a 12 percent decline in net profit at KD14.2 million ($46 million) on higher interest expenses and addition to debt required for financing acquisitions last year.
While revenue more than doubled to KD328 million ($1.1 billion), Agility’s EBITDA increased 63 percent to KD60.5 million ($197 million), says an official release.
"On a like-for-like basis - excluding the performance of Menzies Aviation and HG Storage International which were acquired in August 2022 - Agility’s EBITDA increased 10 percent and revenue was up nine percent in the second quarter of 2023.”
Tarek Sultan, Vice Chairman, Agility
Tarek Sultan, Vice Chairman, Agility says: “We’re pleased with our growth and performance this quarter. We continue to see good results in our operating businesses due to organic growth and our acquisitions in 2022. Global equity markets performed better this quarter, reflecting in our investments segment. Nevertheless, we continue to take a longer-term view of our strategic investments. We also continue to look for opportunities to drive and unlock value for our shareholders, customers, employees and communities.”
For the first six months of 2023, Agility’s net profit stood at KD29.4 million ($95.5 million), an increase of two percent, EBITDA increased by 70 percent and revenue was up 140 percent compared to H12022.
Aviation services revenue zooms
Menzies Aviation’s revenue was KD162.2 million ($527 million) and EBITDA came in at KD21.9 million ($71.2 million) in Q22023, an increase of 862 percent and 367 percent, respectively, over the same period last year when Agility was reporting only National Aviation Services (NAS) results. "The Q22023 results include the results of Menzies Aviation that was acquired in Q3 of 2022 in addition to those of the legacy NAS business, now combined under Menzies Aviation. The combined entity’s EBITDA margin is 13.5 percent today.
"Menzies Aviation results have strengthened with the post-pandemic aviation industry recovery, which has included growth in flight volumes. Volumes in most geographies have fully recovered, except for East Asia, where lockdown restrictions were strictest, and volumes are now slowly growing. Menzies has a number of new operations that it has launched or acquired: Jamaica, Panama, Atlanta, Milan, Montreal and others.
"The integration of NAS with Menzies is now complete and the synergies, both operational and financial, are being realised."
Agility’s controlled businesses reported a combined EBITDA of KD61.2 million ($199 million), an increase of 54 percent over Q22022, the release added.
