Q2 2026 Agility Public Warehousing Co KSCP Earnings Call
Speaker #1: Hello everyone, and thank you for joining us for the Machazon Q2 2026 earnings webcast. My name is Drew, and I'll be the operator on the call today.
Speaker #1: After the prepared remarks, we will hold a Q&A session. If you would like to ask a question on today's code, we'll be taking written questions only.
Speaker #1: If you'd like to submit a question, please click the Q&A box and type in your question. With that, it's my pleasure to hand over to Alia Dow from Arkham to begin.
Speaker #1: Please go ahead when you're ready.
Speaker #2: Thank you. Good morning, good afternoon, ladies and gentlemen. Thank you for joining us today. This is Ali Adel, and on behalf of Arkham Capital, I would like to welcome you to Machazon Q2 2026 earnings call.
Speaker #2: We have today from the management team Khadija, the company CFO, a news of the IR director. As usual, the management will start with a presentation for the key highlights of the second quarter, and it will be followed by a Q&A session.
Speaker #2: So, without any further delay, I'll be handing over the call to Yusuf. Please go ahead.
Speaker #3: Thank you, Ali, and welcome everyone to Machazon Q2 2026 earnings webcast. Today we'll be presenting Machazon Financial and Operational Performance for the second quarter of 2026.
Speaker #3: As mentioned earlier, Khadija will be addressing your questions at the end of today's session, so if you have any questions, please make sure you type them in the chat box.
Speaker #3: And before I hand it over, I'd like to bring your attention to the disclaimer on the second page of the presentation. Please take a moment to review it.
Speaker #3: With that, I'll now hand it over to Khadija to begin the presentation. Thank you.
Speaker #4: Good afternoon, everyone. My name is Khadija Oubala, and I am the CFO of Machazon. thank you for joining Machazon second quarter 2026 earnings webcast.
Speaker #4: Today's agenda is straightforward. We'll start with an executive summary, then we'll walk you through the Q2 2026 financial results, we'll also walk you through the income statement, the balance sheet, and cash flow before opening the line for the Q&A.
Speaker #4: the second quarter of this year was a solid quarter for Machazon, with strengthened financials and continued strategic momentum. Net profit attributable to shareholders reached 18.6 million KD for the quarter.
Speaker #4: More than double the 8.7 million KD reported in the second quarter of 2025. with earnings per share standing at 7.28, an EBITDA increasing by 67% to reach 27 million KD for the second quarter.
Speaker #4: In terms of strategy, our priorities remain unchanged. we continue to focus on strengthening the operating platform, on optimizing the asset base, and advancing projects that are aligned with Kuwait's broader economic and development ambitions.
Speaker #4: Let me take you through the Q2 standalone numbers in a bit more detail. Revenue for the quarter was broadly flat for year over year, standing at 36.1 million KD.
Speaker #4: About 1% below last year. with reflecting the size handed over to PI during 2025. So let me just repeat that. So the revenue is at 35.6 million KD, below last year, which stood at 36.1 million KD.
Speaker #4: And the decline is the reflection of the site handed over to PI during last year. EBITDA was up 75%. EBITDA increased was up 6 EBIT was up 75%, which increased from 14.2 million to 24.8 million KD.
Speaker #4: in terms of EBIT, EBIT stood at 27 million. That's an increase of 67% from last year. It stood at 16.2 million KD. The net profit attributable to shareholders stood at 18.6 million.
Speaker #4: For the quarter, more than double the year. And that's an increase of 114%, with earnings per share, as I said earlier, at 7.27. So across EBIT, EBITDA, and net profit, we saw substantial improvement this quarter.
Speaker #4: that was the picture for the quarter, and now I'm going to walk you through the main lines in the financial statements in more detail for the first half of the year as well.
Speaker #4: Now, if we look at the gross revenue for the first half, we came in at 71.5 million, down 3%, from a year ago. which was, for the first half of 2025, 73.9 million.
Speaker #4: And again, that's mainly the sites that were handed over. Those are Slybee and Zahra Kraft, which we handed during 2025. The net revenue is 56.4 million, down 9%, from 62.3 million KD last year.
Speaker #4: on the EBITDA and EBIT, we're looking at losses, 189.3 million on the EBITDA side, and 193.7 million on the EBIT side. against profits of 32, points, million, and 28, million last year.
Speaker #4: Net income came in as a loss of 206 million, versus a profit of 18 million in, the first half of last year. So the loss per share is, 81.
Speaker #4: almost 1, compared to an earning of 7.23 last year. Now, this is very important to highlight because, this entire swing came from the one thing, which happened the first quarter, which is the non-cash write-off we took on the litigated land loss with PI.
Speaker #4: that was a non-recurring item. Driven by specific legal and accounting decisions, which we've covered in detail during the first quarter. If you look at the consolidated, numbers, including the discontinued operations, net income was also a loss of 206 million.
Speaker #4: and net, but that's actually also, improvements of by 24% from the loss last year. again, here it's not worth not worth in why. last year's loss was bigger because it included the agility global re-measurement ahead of the in-kind distribution that happened.
Speaker #4: That was, again, a one-off in 2025, and it doesn't recur since, an agility global, obviously, now is no longer consolidated. So while the headline numbers show a large loss, that's, an accounting outcome tied to specific non-recurring events.
Speaker #4: And it is not a reflection of how the per the business performed, this half. So if we look at the, the balance sheet, and starting with the assets, total assets stood at 829 million.
Speaker #4: the larger movement is against December, where we had total assets standing at a billion 77 million. And that's a decline of 247 million, or 23%.
Speaker #4: And that's driven, again, by Q1 write-off on the litigated land plot with PI. It's visible if you look at the financial statement. That would be under the investment properties line.
Speaker #4: and all of this, again, was covered in detail during the first quarter. Liabilities that are positioned is largely stable. Total liabilities, stand at 477 million.
Speaker #4: And, we haven't recorded any borrowing during the quarter. On the equity side, equity attributable to shareholders was at 339 million. As of June, up 10 million from, March.
Speaker #4: with that, I'd like to note also, in the financial statement, that, we see earnings started 32nd quarter, stand at 13.5 million. Please do note that retained earnings were fully absorbed in Q1 due to the write-off.
Speaker #4: So this slide represents a rebuild, entirely from the profit generated during the quarter. two quarters. Finally, non-controlling interest came in at 12 points, 5 million.
Speaker #4: Those reflect the subsidiaries' dividends paid to the minorities during the quarter. Now, turning into cash flow. for the first half of the year, the cash generated from operating activities before working capital changes stood at 45.1 million.
Speaker #4: And after working capital changes and other items, the net cash flow from operating activities, is at 35.3 million. Net cash used in investment activities is a positive, sorry, is, is stood at, negative 0.8 million for the half.
Speaker #4: capital expenditures, obviously, are still, there on ongoing projects, including mainly the S2 construction. But that was largely offset by dividends and other proceeds received during the period.
Speaker #4: I'd flag that, the year-on-year comparison here on the operating cash flow line isn't really meaningful, because last year's comparative still included agility global, which was under full consolidation.
Speaker #4: So the prior year base isn't on the same parameter, as this year's figure. So to bring it together, Q2 2026 was profitable, cash generative quarter.
Speaker #4: And the business remained self-funded. The balance sheet has been reset into a clean and transparent footing following the adjustment we made earlier in the year.
Speaker #4: and I would like to thank you, for your attention. And I'm going to take a few minutes to connect to the Q&A dashboard.
Speaker #2: Thank you. If you would like to ask a question on today's call, please use the Q&A box and type in your question. We will pause for a while just to allow those questions to come in.
Speaker #2: Just as a reminder, if you would like to ask a question on today's call, please click the Q&A button and type in your question.
Speaker #2: We will only be taking written questions on today's call.
Speaker #4: There's one question. in light of the announcement holding tenders for AD Ports, how do you think about regional inorganic opportunities in the logistics warehouse space, etc.?
Speaker #4: I think this question is, probably addressed to agility global, which has a more of, a global, focus and, strategic focus. Makhazin is, mainly focused on Kuwait.
Speaker #4: And, on, logistics and industries that are in line with Kuwait's economic development and initiatives. Is the question, did any warehouse get impacted as a result of the war?
Speaker #4: there was, one incident in Doha, which we have reported, but it is not material.
Speaker #2: Just as a further reminder, if you would like to ask a question on today's call, please use the Q&A box and type in your question.
Speaker #2: It looks like we have no further questions in the queue at this time. So I'll hand back over to management for any closing remarks.
Speaker #4: Thank you so much for your attention today.
