Agility Global PLC, a multi-business owner and operator and long-term investor in global and regional businesses, today reported Q3 2024 earnings of $37.1 million, or 0.36 cents per share. EBIT grew 36% to $104.6 million, and revenue increased 16% to $1.2 billion. (Note that figures for the comparable period are carved-out financials).
For the first nine months of 2024, earnings stood at $97.4 million, or 1.14 cents per share. EBIT grew 46% to $292.7 million, and revenue increased 13% to $3.3 billion.
“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 profit-and-loss statement.”
Interim Dividends
Agility Global’s board has approved the distribution of $65 million as the second interim cash dividends for Q3 2024. Shareholders registered on the company’s registrar as of the settlement date 21 November 2024 are entitled to the dividends.
Q3 2024 Performance
Controlled Segment
For Q3 2024, the consolidated EBIT of the controlled businesses was $102 million; EBITDA was $177.7 million; and revenue $1.2 billion. This reflects increases of 20%, 11% and 16%, respectively, over the same period in 2023.
Aviation Services: Menzies
Menzies reported revenues of $704 million and increase of 24% compared to same period last year, this was driven by several new operations including license wins in Spain, acquisitions in Portugal, new operations in Belgrade, and a new warehouse in Bangalore. Q3 EBIT stood at of $60 million – an increase of 55% over the same period a year prior and EBIT margin improved from approximately 6.8% to 8.5% as a result of efficiencies, synergies, and operational leverage. YTD EBIT increased 41% from $103.1 million in 2023 to $145.3 million in 2024.
Fuel Logistics: Tristar
Tristar a fully integrated fuel logistics business continued to deliver strong performance in the third quarter of 2024, Revenue stood at $ 337.2 million with a growth of 23% and EBIT stood at $34 million with a growth of 7% compared to Q3 2023.
Industrial Real Estate: Agility Logistics Parks
Agility Logistics Parks (ALP), a leading developer of warehouse parks and light industrial facilities, reported revenue of $13.2 million and EBIT of $9.6 million increases of 12% and 20%, respectively. ALP’s growth was driven mainly by its Saudi Arabia operations. Recently, ALP announced a development of an additional 100k SQM of warehousing space in Riyadh, part of which will be operational during the first quarter of 2025.
Investments Segment
Agility Global holds non-controlling minority stakes in a number of businesses, both listed and non-listed. As of 30 September 2024, the carrying value of those stakes was roughly $5.1 billion an increase of around USD 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 Shenker, based in Germany. Agility Global owns a total of 19.3 million shares today, equivalent to more than 8% 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.
Reem Mall – Agility Global is an investor in Reem Mall on Abu Dhabi’s Reem Island. Agility Global’s investment in Reem Mall is through equity and convertible debt. The mall had a soft opening to the public in February 2023 and launched formally in May 2024. To date, 183 units are trading, and almost 80% of Gross Leasable Area (GLA) is committed. More tenants are expected to announce openings in coming months. The mall is one of the region’s first, fully integrated omnichannel retail ecosystem with digital, e-commerce, and logistics capabilities. It brings together all consumer and retail services to ensure a seamless customer experience.
Recap of Agility Global Q3 2024 Financial Performance
- Revenue increased 16% to $ 1.2 billion.
- EBITDA increased 19% to $ 180.4 million, with 15% margins.
- EBIT increased by 36% to $ 104.6 million, with 9% margins.
- Net profit stood at USD 37.1 million equivalent to 0.36 cent per share.
- Agility Global enjoys a healthy balance sheet with $ 11.4 billion in assets and USD 5.7 billion in equity.
- Operating cash flow was USD 393 million for the first 9 months of 2024. Agility Global spent a total of USD 180 million in CAPEX and investments for the same period.
