Agility Global Swings to $30.5M Q1 Net Profit

Agility Global PLC, a diversified business conglomerate and a strategic long-term investor in global enterprises, announced its first-quarter earnings for 2024 today, revealing a robust financial performance. The company reported earnings of $30.5 million, translating to 0.58 cents per share. Notably, its EBITDA surged by 34% to reach $169.5 million, while revenue saw a healthy growth of 5.6% to hit $979.4 million.

Listed on the Abu Dhabi Securities Exchange (ADX) as of May 2, 2024, Agility Global operates through two distinct segments:

-> Controlled-business segment: This segment encompasses the company's operating entities, whose financial outcomes are consolidated and reflected in the income statement. Key entities under this segment include Menzies Aviation, the largest aviation services provider globally in terms of operational presence; Tristar, a leader in fuel and chemicals storage, shipping, and logistics; and Agility Logistics Parks, renowned for its ownership and development of industrial real estate across the Middle East, Africa, and South Asia.

-> Investment segment: Holding minority stakes in various enterprises, Agility Global's investment segment primarily includes a 9% stake in DSV, one of the world's top freight forwarders, and a stake in Abu Dhabi's Reem Mall.

Breakdown of the Q1 2024 performance

Controlled Businesses: Consolidated EBITDA for controlled businesses reached $160.8 million, with revenue hitting $979.4 million, marking impressive increases of 40.1% and 5.6%, respectively, compared to the same period last year. Menzies Aviation reported substantial growth, with EBITDA soaring by 32.4% to $87.6 million and revenue climbing by 14.4% to $576.9 million. The growth was primarily driven by enhanced performance across key markets and the resurgence of post-COVID activities in the OSEAA region. Tristar, despite a minor revenue decline of 8.4% attributed to contract wind-downs and asset sales, witnessed a remarkable 48.2% surge in EBITDA, reaching $64.3 million, driven by strong performance across its diversified service portfolio. Agility Logistics Parks reported an EBITDA of $9.4 million on revenue of $12.7 million, reflecting growth of 32.2% and 22%, respectively, propelled mainly by increased demand in Saudi Arabia operations.

Investments Segment: Agility Global's investments, including its stake in DSV and Reem Mall, were valued at approximately $4.2 billion as of March 31, 2024, with a net asset value of $3.1 billion. The 9% stake in DSV, worth $3.1 billion, remains a significant holding for the company. Reem Mall, an investment in Abu Dhabi's retail landscape, demonstrated promising progress, with a substantial portion of its Gross Leasable Area (GLA) already committed and further tenant openings expected shortly.

Future Prospects

Agility Global's first-quarter 2024 performance underscores its financial strength and strategic investments across diverse sectors. With a healthy balance sheet boasting $10.4 billion in assets and $5.1 billion in equity, the company remains poised for continued growth and value creation. Operating cash flow for Q1 2024 stood at $46.2 million, with total expenditures on CAPEX and investments amounting to $44.6 million, showcasing prudent financial management practices.