Agility Q3 net profit zooms to $37 million

Agility Global, a multi-business owner and operator and long-term investor in global and regional businesses, reported a net profit of $37.1 million for the third quarter of 2024 compared to $0.8 million in Q32023.

Revenue increased 16 percent to $1.2 billion from $1.06 billion last year, says an official release.

For the first nine months of 2024, net profit was $97.4 million and revenue increased 13 percent to $3.3 billion.

“Agility Global maintains the healthy growth momentum seen since the beginning of the year," says Tarek Sultan, Chairman, Agility Global. "Our controlled businesses delivered double-digit EBIT growth. That growth was driven by the main three businesses: Menzies, Tristar and Agility Logistics Parks (ALP). Menzies saw growth in new operations in Europe and Asia, Tristar has grown in fuel business and its road and transport segment, and ALP grew in Saudi Arabia; and is further expanding in the Kingdom.

"On the investment side, the share price of DSV, the company’s largest investment, has been positively impacted by DSV’s acquisition of Schenker. When the deal closes, expected in 2025, DSV will become the world’s largest freight forwarder. Today, Agility is the largest investor in DSV. The increase in DSV’s share price has resulted in an increase in the carrying value of our investment. Due to the accounting treatment, this increase will be reflected through equity and not through profit-and-loss statement.”

Aviation services: Menzies
Menzies reported revenues of $704 million, an increase of 24 percent compared to the same period last year, driven by new operations including licence wins in Spain, acquisitions in Portugal, new operations in Belgrade, and a new warehouse in Bengaluru, the release added. "EBIT stood at $60 million – an increase of 55 percent over the same period a year prior and EBIT margin improved from approximately to 8.5 percent as a result of efficiencies, synergies, and operational leverage. YTD EBIT increased 41 percent to $145.3 million."

Industrial real estate: Agility Logistics Parks
Agility Logistics Parks (ALP) reported revenue of $13.2 million and EBIT of $9.6 million, increases of 12 percent and 20 percent, respectively. "ALP’s growth was driven mainly by its Saudi Arabia operations. Recently, ALP announced a development of an additional 100k sq.m. of warehousing space in Riyadh, part of which will be operational during the first quarter of 2025."

Investments
Agility Global holds non-controlling minority stakes in a number of businesses, both listed and non-listed, the release added. "As of September 30, 2024, the carrying value of those stakes was roughly $5.1 billion, an increase of around $485 million from December 31, 2023. The main investments in this segment are in DSV and Reem Mall.

"DSV is a Copenhagen-based logistics company and is expected to become the world’s number one freight forwarder when it completes its acquisition of DB Schenker. Agility Global owns a total of 19.3 million shares today, equivalent to more than eight percent of DSV’s capital, making it one of the Denmark-based company’s largest shareholders. DSV’s share price was boosted by the announcement that DSV will acquire Schenker. The upward movement in DSV’s share price increased the carrying value of this investment, which was $4 billion as of September 2024."

First published on stattimes