Global aviation to recover to pre-Covid levels in 2024, says Kuwaiti-linked Menzies

Kuwait headquartered supply chain and infrastructure services company, Agility, reported robust financials for the fiscal year 2023, spurred on by an uptick in its aviation services business Menzies.

For the full fiscal year, Agility witnessed growth across key financial metrics. EBITDA (earnings before interest, taxes, depreciation and amortisation) soared by 42.4 per cent to KD 257.2m, with revenue increasing by 56.7 per cent to KD 1,35bn. Its net profit was up 22.8 per cent for the year, reaching KD 68m. 

Tarek Sultan, vice chairman of Agility, said, “Agility’s Investments segment benefited from a general uplift in global equity markets in the third quarter of the year. Given the materiality of this segment to our balance sheet, and in particular our DSV investment, Agility closed two funded equity collar agreements to safeguard the value of DSV stake and get access to relatively cheaper funding.”

Agility is the second-largest shareholder in Danish transport firm DSV, with an 8 per cent stake. In April last year, Agility entered into a derivative transaction known as a collar trade with banks to hedge its investment in DSV. A collar trade is an options strategy that limits both gains and losses.

Aviation, fuel logistics uptick

Another one of Agility’s subsidiaries is Menzies Aviation, which is the world’s largest aviation services company, reported substantial revenue and EBITDA growth.

Menzies Aviation reported revenue of KD 665.8m and EBITDA of KD 97.8m for FY 2023, increases of 126.5 per cent and 135.5 per cent respectively over the same period a year earlier.

“Globally, air travel reached 95 per cent of 2019 levels in December 2023. Menzies expects that all major markets will recover to pre-Covid levels during 2024. Total air traffic, according to the International Air Transport Association, grew 37 per cent in 2023,” said a statement from Agility.

“All geographic regions served by Menzies posted year-on-year revenue growth due to increases in passenger flights,” the company added.

Tristar, another key entity of Agility in the fuel logistics space, witnessed a 33.3 per cent growth in consolidated revenue, exceeding $1bn.

Other controlled businesses, including Agility Logistics Parks, UPAC, and Global Clearinghouse Systems, all contributed positively to Agility’s overall performance.

	Q4 2023 (Million KD)	Q4 2022 (Million KD)	Variance (%)	FY 2023 (Million KD)	FY 2022 (Million KD)	Variance (%)
Revenue	343.9	336.5	2.2%	1,353.0	863.4	56.7%
Net Revenue	218.3	188.6	15.7%	818.0	473.3	72.8%
EBITDA	77.5	63.8	21.6%	257.2	180.5	42.4%
Net Profit	26.0	26.6	-2.3%	83.6	68.0	22.8%
EPS (fils)	10.2	10.5	-3.0%	32.7	26.8	22.0%