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Agility’snet income fell 93% y-o-y to KWD 68 mn in FY 2022, the company said in itsearnings release. The company’s 2021 financials included its global integrated logistics business, which it sold in August of that year to DSV Panalpina. On a like-for-like basis, the company’s net income rose 153.5% y-o-y, when Menzies Aviation and HG Storage International’s performance — both acquired by the company in 2022 — are excluded. The Kuwaiti warehousing and industrial developer’s revenues rose 77.6% during the year to reach KWD 863.4 mn.
Agility’s aviation assets saw ups and downs last year: Agility’s aviation services reported KWD 294 mn in revenues, including National Aviation Services’ (NAS) full-year performance and five months of Menzies’ results. The company’s ground handling operations partially recovered due to the recovery of air travel, but this was “slightly offset” by a reduction in revenue from covid-19-related services provided mainly in Kuwait, it said. Cargo volumes also slowed near the end of 2022, according to the release.
The rest remained solid:The company’s fuel logistics subsidiary, Tristar Business’ revenue rose 60.1% y-o-y to KD 252.9 mn, while Agility Logistics Parks’ (ALP) revenues rose 10% y-o-y in 2022. United Projects for Aviation Services Company (UPAC) reported a 28.2% y-o-y increase in revenue for 2022, mainly on the rebound in airport-related services after the lifting of covid-19 restrictions. Global Clearinghouse Systems (GCS), Agility’s customs-modernization company, reported 4% y-o-y revenue growth in 2022.
What they said: “Agility had a strong 2022, marked by two major acquisitions that are reshaping the company and creating new opportunities. But like all businesses, we face global economic uncertainty in 2023, as well as uncertainty regarding government land lease policy in Kuwait,” Vice Chairman Tarek Sultan said.
The company will not be distributing dividends for FY 2022 as a result of the “uncertainty related to public sector policy with respect to land use [in Kuwait] and the role of the private sector in the economy,” according to its earnings release. The recommendation is subject to the approval of the annual general meeting.
BACKGROUND- Agility acquired Menzies in August 2022 and consolidated it with National Aviation Services (NAS), Agility’s legacy ground handling business. Its energy logistics subsidiary, Tristar, also acquired a 51% stake in HG Storage International last year for USD 215 mn.
