[ID] => 9316
[post_author] => 288
[post_date] => 2018-03-08 07:01:51
[post_date_gmt] => 2018-03-08 07:01:51
[post_content] => Kuwait-headquartered Agility has announced a 2017 net profit of KWD 68.5m ($227.6m), up 16 per cent on the previous year's figure of KWD 59.1m, from net revenues worth KWD 469.9m, themselves up 9.5 per cent from KWD 429.1m. EBITDA increased by 17.4 per cent to KWD 135.2m. Meanwhile, fourth-quarter net profit jumped 22.5 per cent year-on-year to reach KWD 19.3m from KWD 15.7m, with net revenues rising 12 per cent over the period to KWD 125.7m.
"In 2017, Agility posted another year of healthy growth and continued to plant the seeds for a future of sustainable growth," says CEO and vice-chairman Tarek Sultan. "To reach our target of $800m EBITDA by 2020, we remained focused on improving Agility Global Integrated Logistics' (GIL) performance and investing in our Infrastructure companies. For every business in the group, 2017 was a critical year."
GIL’s net revenues rose 2.6 per cent last year, thanks largely "to growth in the freight forwarding business and contract logistics". However, the company continues, "net revenue margins shrank to 23.7 per cent from 26.4 per cent amid yield pressure across the industry". In the fourth quarter, the division's net revenues increased 6 per cent year-on-year, albeit with a drop in net revenue margins from 26 per cent a year ago to 22.6 per cent.
Nevertheless, EBITDA was up 30.7 per cent over the period, with margins expanding from 4 per cent this time last year to 4.3 per cent.
Contract logistics also "continued its strong growth" in the fourth quarter, upping gross revenues by 17.6 per cent year-on-year. This growth originated "primarily in the Middle East and Asia Pacific", Agility notes, adding that it was also "aided by a combination of new customers and investments in new facilities". At the same time, air and ocean increased revenues by 25 per cent during the period, with air cargo volumes up 9.7 per cent and ocean TEUs up 12 per cent.
"GIL is growing through a strategy that focuses on defined solutions and customer segments, enhanced sales productivity and efficient trade lane development," Sultan says. "In addition, GIL is building systems and solutions that enable business insight, efficiencies and increased productivity for our operations and for our customers. As always we are working hard to maintain cost discipline."
As part of that focus on systems, Agility has become the first freight forwarder to collaborate on a Maersk/IBM initiative to use blockchain technology to manage and track container shipments. Blockchain techniques can be used to create a “secure, immutable and tamper-resistant ledger that can be used to track shipments, documentation and payment transactions", Agility says, using a "digital infrastructure [that] can connect parties in the supply chain, giving them access to information and real-time visibility based on their level of permission".
As such, Agility has agreed to identify events associated with individual shipments and to share and receive information about them via the distributed ledger blockchain technology, with the aim of reducing costs and increasing shipping efficiency "by integrating information about shipments onto a secure platform accessible to shippers, carriers, freight forwarders and others in the supply chain".
"Blockchain technology is going to make shipping cheaper, safer and more reliable," says GIL CEO Essa Al-Saleh. "As early adopters, companies like Agility can help Maersk and IBM understand the needs of shippers and develop standards that will make trade more efficient. We can help customers understand how to use blockchain to improve shipment visibility, eliminate paperwork, reduce errors and shorten transit and clearance times."
[post_title] => Agility: Sowing the seeds of growth
[post_status] => publish
[comment_status] => open
[ping_status] => open
[post_name] => agility-sowing-seeds-growth
[post_modified] => 2018-03-08 07:02:27
[post_modified_gmt] => 2018-03-08 07:02:27
[post_parent] => 0
[guid] => https://www.hcblive.com/?p=9316
[menu_order] => 0
[post_type] => post
[comment_count] => 0
[filter] => raw
Agility: Sowing the seeds of growth