Sound footing aids Agility in first half
Economic fallout from as a result of pandemic had uneven effect on its businesses
Logistics firm Agility's net profit for the first half shrank 61.3 per cent to 16.2 million Kuwaiti dinars (Dh194 million) due to the impact of Covid.
Its revenues fell 1.3 per cent or 10 million dinars from KD775 million to KD765.1 million.
"We entered 2020 with our business on sound footing, which is one reason that we were able to react quickly to the sweeping impact of the Covid-19 pandemic. We also took steps to bring operating expenses and other costs in line with the new environment," said Tarek Sultan, vice-chairman and CEO of Agility.
He said the economic fallout from the pandemic has had an uneven effect on Agility businesses.
"Our contract logistics business and logistics parks have weathered this reasonably well because demand for storage space has been steady or increased, especially as customers have looked to add to safety stock or support pandemic-driven increases in e-commerce sales. In many instances, we are experiencing accelerated adoption of disruptive and emerging technologies related to the Covid-19 pandemic or underlying CSR paradigms," said Sultan.
Its global integrated logistics (GIL) unit's first-half net revenue totalled KD135.8 million, in line with last year's performance. Net revenue increased in contract logistics, project logistics and air freight, but fell in ocean freight and fairs and events. GIL gross revenue was KD570.6 million, a 2.5 per cent increase from same period in 2019.
"In response to the Covid-19 crisis, all entities across the board activated their cost alignment measures. And even during these difficult times, each business has contributed to several CSR activities including delivering food to families in Kuwait and supporting the Kuwait Red Crescent Society's initiatives," Sultan said.
"Ultimately, we feel that our long-term vision of infrastructure growth in emerging markets, our growing focus on disruptive technologies and digital enablement for logistics, and expansion into new market segments like e-commerce, is more important than ever," he added.
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