Global logistics provider Agility on Monday reported net profit of US$138 million (KD 41.6 million) for 2020, down 52.1 percent from 2019.
In its 2020 financial report, the company recognised the performance of its integrated logistics (GIL) unit, which took much of the slack as other business units saw dismal results.
Full-year net revenue for GIL inched up 3.8 percent versus 2019 to US$940 million (KD283.7 million), primarily driven by air freight and contract logistics which saw revenue grow 31.4 percent and 12.2 percent, respectively.
Despite a 15.6 percent drop in volume, the air freight segment capitalised on higher yields, with continued demand for exceptional shipments, which included products in the life sciences industry.
Growth in its contract logistics segment, meanwhile, was attributed to strong performance in the Middle East (specifically, Kuwait, Saudi Arabia, Abu Dhabi) and Asia Pacific (Australasia and Indonesia).
The logistics provider said its GIL unit grew overall in 2020, despite challenges in other areas within the business, like ocean freight, fairs & events, and project logistics, as well as one-off charges resulting from cost-cutting initiatives given the impact of Covid-19.
For 2020, Agility’s revenue reached US$5.3 billion (KD1.6 billion), up 2.7 percent versus 2019, whilst EBITDA hit US$538 million (KD162.4 million), down 15.9 percent. Operating cash flow for 2020 was US$589 million (KD177.8 million), up 17.3 percent compared to the previous year.
Vice chairman and CEO Tarek Sultan said the company will 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.
As part of future investments, Sultan said the company will prioritise its life sciences capabilities for distribution of vaccines, therapeutics, medical equipment and related products. It also plans to boost its sustainability and ESG initiatives, including efforts to reduce fleet emissions and improve energy efficiency in facilities.
Agility is also making strategic bets on emerging technologies and companies that the company believes will reshape supply chains, including its online logistics, last-mile and e-commerce portfolio on online logistics platform Shipa.
In early January, the company, together with CHAMP Cargosystems and QR Cargo, completed the first phase of IATA’s One Record pilot, which is expected to standardise the data exchange protocol in the air cargo industry.