Agility releases third quarter financial results
NOV 12, 2015: Agility announced its financial results for the third quarter of 2015, reporting a net profit of KD 13.7 million, an increase of 5 percent compared to the third quarter of 2014. Earnings-per-share stood at 11.91 fils. Revenues and EBITDA for the same period stood at KD 335.0 million and KD 24.4 million. For the first nine months of 2015, Agility’s profits were KD 39.0 million, or 33.97 fils per share, a 5 percent increase from same period last year. Revenues were at KD 981.5 million and EBITDA was KD 73.3 million.
“The global logistics market remains soft as the result of flat or declining trade volumes and weakness in key economies around the world. Even so, we have continued to make gains in our core commercial logistics business because we have found ways to be more efficient, improve productivity, demonstrate financial discipline and make operations more responsive to the marketplace and customers’ needs,” said Tarek Sultan, Agility CEO. “Companies in the Agility Infrastructure group are also looking to be more efficient while, at the same time, finding excellent opportunities in emerging markets.”
Revenue for Agility Global Integrated Logistics (GIL) for the third quarter of 2015 was KD 248.2 million. On a constant currency basis this represents a 3 percent decrease from Q3 of 2014 mainly as a result of a softening in air freight volumes.
The overall logistics sector turned in a mixed performance in this quarter. Even though air freight softened; ocean freight, contract logistics, Chemicals, and Fairs and Events continued to grow. This performance, coupled with better commercial disciplines, resulted in net revenue growth of +3 percent on a constant currency basis and a net revenue margin improvement from 23 percent in Q3 2014 to 25 percent in Q3 2015. In addition, tight cost management led to further EBITDA margins improvement.
“We are making tangible gains in our business performance. We have a clear strategy and are building the necessary disciplines. GIL’s road map remains consistent. First, continue to drive commercial improvement through a tradelane and sales force management approach. Second, continue transforming the underlying business through ongoing technology, process and management improvements. Third, maintain financial discipline and a lean and agile structure that is in-line with business needs,” Sultan said.
The Infrastructure group continued to shows growth in this quarter and will remain an important and growing contributor to the group’s profitability. Each entity is pursuing its individual strategy to grow and expand. Most have a strong foundation in the Middle East and are actively going after opportunities to grow in the region, Africa, and elsewhere,” Sultan said.
Agility’s Infrastructure companies contributed KD 86.8 million to third quarter 2015 revenues. Revenues for this group showed a 25 percent increase over the same period last year.