Agility, a leading global logistics provider has reported 2020 net profit of $137 million, a decrease of 52.1% from 2019.
Revenue for the year reached $5.3 billion, an increase of 2.7%, and EBITDA reached $536 million, a decrease of 15.9%.
The 2020 results include one-time expenses related to restructuring that took place in response to the COVID-19 pandemic for $42 million and $96.6 million expense associated with the loss of Amghara land.
Agility’s Board of Directors has recommended a cash dividend distribution of 10%, along with 10% bonus shares (10 shares for every 100 shares), subject to approval of the General Assembly.
Agility Vice Chairman and CEO Tarek Sultan said 2020 was a challenging year for most businesses around the world, including Agility.
Sultan said: “Our company moved swiftly to adjust its cost structure to match the reality confronting each part of the business, while at the same time making sure to preserve our long-term strategic vision and ongoing support for our communities around the world.
“We are proud of the steps we took to keep our front-line workers safe, and keep cargo moving for our customers in the face of one of the greatest supply chain disruptions the world has ever seen.
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"We also stayed committed to ongoing pro-bono support for government, humanitarian, and education partners that are coping with the global pandemic.”
Sultan outlined areas that Agility is prioritizing for future investment:
Gearing up the company’s Life Sciences capabilities for distribution of vaccines, therapeutics, medical equipment and related products.
Making strategic bets on emerging technologies and companies that Agility believes will reshape supply chains, including Agility’s online logistics, last-mile and e-commerce portfolio, through its Shipa group of companies.
Boosting its sustainability and ESG initiatives and partnerships, including efforts to reduce fleet emissions, improve energy efficiency in logistics facilities, and work in partnership with customers.
Sultan said Agility must remain agile, flexible and ready to adjust to ongoing global economic uncertainty in 2021. “Our goal is not only to weather the storm, but to emerge stronger than ever from this crisis,” he said.
Agility’s full-year results and fourth-quarter results in particular, were affected by one-off expenses related to the loss of Amghara land and COVID-19 net restructuring expenses.
Before accounting for those expenses, Agility would have reported 48.6% EBITDA growth in the fourth quarter, vs. Q4 2019, and 5.1% growth on a full-year basis.
Agility has a healthy balance sheet and is able to meet its liquidity requirements.
Local, regional and international banks have recently extended the company $1.1 billion in 3 and 5 year credit facilities.
In addition, the company’s focus on working capital management across the board in the midst of tough market conditions has yielded positive results. Operating cash flow for the year was $586 million, a 17.3% increase over 2019.
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