Kuwait-based Agility’s CEO Tarek Sultan said his infrastructure companies have shown strong signs of recovery from the effects of the global pandemic. The logistics provider on Sunday reported a net profit of 12.6 million Kuwaiti dinar ($41.75 million), an increase of 28.7 percent over the same period in 2020.
Agility’s board of directors approved a cash dividend of 20 fils per share. This might include treasury share buyback for the coming three years subject to shareholder approval, the company said in a statement.
EBIT (earnings before interest and taxes) jumped 31 percent to 26.9 million dinars, and revenue rose 28.6 percent to 485.5 million dinars. “The infrastructure businesses contributed an average of 80 percent of Agility’s EBIT over the past 5 years,” Sultan said.
Agility has 2.3 billion dinars in assets, while net debt was 209.4 million dinars as of March 31, 2021. Reported operating cash flow was over 52 percent higher at 40.3 million dinars for the first quarter of 2021.
Regarding Agility’s recent decision to sell its core commercial logistics business, Sultan said, “Going forward, Agility’s agreement with DSV Panalpina for DSV to acquire Agility’s Global Integrated Logistics business allows us to retain the assets generating the bulk of our operating profit, while taking advantage of the scale, experience, operational excellence and possibilities offered by working with DSV, one of the industry’s top performers. It also creates the flexibility and resources to reposition the company for its next chapter of growth.”
(Writing by Brinda Darasha; editing by Daniel Luiz)
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