Kuwait-based Agility, one of the largest logistics companies in the Mena region, reported a 58 per cent annual decline in second-quarter profit due to the impact of discontinued operations.
Net profit attributable to equity holders of the parent company for three months to the end of June fell to 16 million Kuwaiti dinars ($52.25m), from 38.5m dinars during the same period last year, the company said in a statement on Friday to the Dubai Financial Market, where its shares are traded.
“The decrease in net profit is mainly due to the inclusion of the results of discontinued operations in the comparative period,” it said.
The earnings of Agility's Global Integrated Logistics (GIL) unit, which was sold in August 2021, were included in its financials up to the current period.
Profit from continued operations increased by 2 per cent for the second quarter, Agility said.
Last year, the company sold its core logistics business, GIL, to Danish company DSV Panalpina, which is the world’s third-largest freight and logistics provider, in exchange for 19.3 million shares in DSV.
Agility reported a one-time gain of about 1 billion dinars and is now the second-largest shareholder in DSV with an 8 per cent stake.
Net revenue during the three-month period rose 22 per cent to 72m dinars even despite rising cost pressure.
General and administrative expenses for the period climbed 12 per cent to 13.2m dinars and finance costs jumped 23 per cent to 5.8m dinars.
Cost of revenue for the quarter also rose to 66.4m dinars, from 53.1m dinars, during the same period last year.
The company’s first-half profit fell close to 44 per cent to 28.8m dinars while net revenue rose by about 19 per cent to 139m dinars during the period.
Agility’s total assets rose by about 5 per cent annually to 2.47 billion dinars, while its liabilities dropped close to 17 per cent to 952.2m dinars at the end of June, the company said.
Earlier this week, Agility signed a new credit facility of €1.4bn ($1.42bn) to fund the acquisition of UK-based aviation company John Menzies and other growth plans.
On August 4, Agility finalised its £763m ($921.5m) acquisition of John Menzies in a deal that creates the world's biggest aviation services provider.
Agility will merge its subsidiary, National Aviation Services, with John Menzies, to create Menzies Aviation, which will provide air cargo services, fuel services and ground services at airports around the world.
