Agility Global PLC Reports Q3 2024 Net Profit of $37 Million

Agility Global PLC, a prominent multi-business operator and long-term investor in global and regional ventures has announced its third-quarter earnings for 2024, showing a solid performance. The company posted a net profit of $37.1 million, or 0.36 cents per share, with an impressive 36% growth in EBIT, totalling $104.6 million. Additionally, revenue surged by 16%, reaching $1.2 billion. These results are based on carve-out financials, which exclude certain items for comparison.

For the first nine months of 2024, Agility Global earned $97.4 million, or 1.14 cents per share. EBIT rose by 46% to $292.7 million, while revenue increased by 13%, totalling $3.3 billion, reflecting the company's sustained growth trajectory in the year.

“Agility Global maintains the healthy growth momentum seen since the beginning of the year. 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,” said Agility Global Chairman Tarek Sultan. “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 the profit-and-loss statement.”

Interim Dividend Distribution

The Agility Global board has approved a second interim cash dividend for Q3 2024, amounting to $65 million. Shareholders registered as of the settlement date on November 21, 2024, will be eligible to receive the dividend payment.

Financial Highlights for Q3 2024

For the third quarter, Agility Global's consolidated EBIT for controlled businesses stood at $102 million, an increase of 20% year-over-year. EBITDA reached $177.7 million, up 11%, and revenue matched the previous growth rate with a 16% increase, totalling $1.2 billion.

Aviation Services Segment: Menzies

Menzies, a key player in Agility Global's Aviation Services sector, achieved strong growth in Q3 2024. Revenue rose by 24% to $704 million, driven by new operations and acquisitions in Spain, Portugal, Belgrade, and Bangalore. The company reported a 55% increase in EBIT, reaching $60 million, with an improved EBIT margin of 8.5%—up from 6.8% a year earlier. Year-to-date, Menzies' EBIT grew by 41%, from $103.1 million in 2023 to $145.3 million in 2024.

Fuel Logistics: Tristar

Tristar, the integrated fuel logistics business, continued its strong performance in Q3 2024. The company reported revenue of $337.2 million, a 23% increase compared to the previous year. EBIT grew by 7%, reaching $34 million, maintaining its positive momentum in the sector.

Industrial Real Estate: Agility Logistics Parks

Agility Logistics Parks (ALP), a leader in the development of warehouse parks and light industrial facilities, recorded a revenue of $13.2 million and EBIT of $9.6 million, reflecting increases of 12% and 20%, respectively. ALP's growth was primarily driven by its operations in Saudi Arabia. The company recently announced plans to develop an additional 100,000 square meters of warehouse space in Riyadh, with some areas expected to open by Q1 2025.

Investments Portfolio

Agility Global holds non-controlling stakes in a variety of businesses, both public and private. As of September 30, 2024, the total carrying value of these investments stood at approximately $5.1 billion, marking a $485 million increase from December 31, 2023. Notable investments include DSV, a leading logistics firm, and Reem Mall, located on Abu Dhabi's Reem Island.

DSV Investment

Agility Global owns 19.3 million shares of DSV, equating to more than 8% of the company’s capital. DSV's stock price saw significant growth following its announcement to acquire Schenker, which will make DSV the world's largest freight forwarder. The value of Agility Global’s investment in DSV rose to $4 billion by September 2024.

Reem Mall Investment

Agility Global has invested in Reem Mall, a cutting-edge retail centre on Reem Island in Abu Dhabi. The mall officially launched in May 2024, following a soft opening in February 2023. Nearly 80% of its gross leasable area (GLA) is now leased, and more tenants are expected to open in the coming months. The mall features a fully integrated omnichannel retail ecosystem, combining digital, e-commerce, and logistics services to enhance customer experience.

Summary of Q3 2024 Financial Performance

> Revenue increased by 16%, totalling $1.2 billion.

> EBITDA rose by 19%, reaching $180.4 million, with a margin of 15%.

> EBIT grew by 36%, totalling $104.6 million, with a margin of 9%.

> Net profit stood at $37.1 million, equivalent to 0.36 cents per share.

> The company maintains a robust balance sheet with assets totalling $11.4 billion and equity of $5.7 billion.

> Operating cash flow for the first nine months of 2024 was $393 million, with $180 million invested in capital expenditures and other investments.