Q42018 profits increase 15%
Agility has reported 2018 net profit of KD 81.1 million, or 56.06 fils per share, an increase of 18.4% from 2017.
Revenue for the year reached KD 1,550.2 million, and EBITDA was KD 154.8 million, increases of 10.2% and 14.5%, respectively.
For the fourth quarter 2018, Agility reported a net profit of KD 22.2 million, or 15.35 fils per share, an increase of 15.1% over Q4 2017. EBITDA for Q4 2018 was KD 40.8 million, an increase of 8.4%.
Agility’s Board of Directors has recommended a cash dividend distribution of 15% (15 fils per share), along with 15% bonus shares (15 shares for every 100 shares), subject to approval of the General Assembly.
Said Agility Vice Chairman and CEO Tarek Sultan: “Agility has improved profitability for shareholders for 10 consecutive quarters. In 2018, Agility posted double-digit EBITDA growth for the third year in a row.”
Sultan said that the company continues to invest in its future by building more than 1 million sqm of new warehousing and industrial facilities across the Middle East and Africa; building, through one its subsidiaries, the $1.2 billion Reem Mall mega project in Abu Dhabi; and investing more than $100 million in Shipa, its digital logistics platform.
Cash flow from operations has been healthy and growing, while free cash flow has been limited as a result of capital expenditure that led to increased borrowing to fund strategic investments.
Agility’s dividend recommendation reflects its desire to reward shareholders without inhibiting future business growth.
Sultan said that Agility remains committed to achieving its target of $800 million EBITDA. However, the timeline may be stretched beyond 2020.
Agility will be exploring different avenues for unlocking and maximizing value for our shareholders, including investments, acquisitions, and public offerings of certain businesses in its portfolio, he said.