Kuwait’s Agility Q1 net profit surges 5 percent

Kuwait's Agility, the largest Gulf logistics group, has reported a five percent increase in its net profit for the first quarter which soared to KD11.8 million ($39.4 million) compared to the same period last year.

Announcing the results, the Logistics group said its revenues for the first quarter hit KD318.1 million ($1.05 billion), up one percent from KD314.3 million ($1.04 billion) during the same period in 2014.

The group’s net revenues, however, increased by three percent over the same period. The earnings-per-share stand at 10.79 fils.

Agility said the ebitda stands at KD23.4 million ($77.6 million), up four percent increase compared to the first quarter of 2014.

Commenting on the performance, CEO Tarek Sultan, said: "We continue to build momentum within our business and have started the year on a good note. Global Integrated Logistics has seen further margin expansion in this quarter by focusing on strengthening its operating platform, maintaining financial discipline, and focusing on high-growth markets, products, and verticals."

"We will continue to drive change within the organization to maximize the potential of this business. Our infrastructure group of companies posted another healthy quarter fueled by new opportunities in Emerging Markets," he added.

According to him, the revenue for Agility Global Integrated Logistics (GIL) for the first quarter was KD248 million ($822 million). After adjusting for currency translation, this represented an increase of two percent compared to same period last year, he added.

Continued growth in contract logistics in emerging markets, coupled with improved yields in the airfreight business, resulted in a net revenue improvement of one percent with margins expanding from 23 percent in the first quarter of 2014 to 24 percent this year.

Agility’s Infrastructure companies contributed KD70.3 million ($233 million) to first quarter 2015 revenues, up 15 percent increase over last year. Agility Real Estate, the largest contributor in the group, too grew its revenues by five percent compared to the same period in 2014.

The other Infrastructure companies have also reported a healthy growth in this quarter and are making progress in new customer acquisition and geographic expansion, particularly in Africa.   

“Agility’s Infrastructure portfolio of companies continues to be an important driver of financial performance, consistently reporting healthy year on year growth,” remarked Sultan.

"The companies, operating across a broad spectrum of logistics-related services, from bulk fuel storage and transport, to industrial real estate development and management, to airport and ground handling services, to commercial real estate and facilities management, are well poised to take advantage of niche market segments in fast-growing regions in the Middle East, Asia, and Africa," he stated.

Agility said it enjoys a healthy balance sheet, with a net cash position of KD70 million ($232 million) as of March 31, 2015, and free cash flow of KD12 million ($40 million) for the first quarter.

On its future outlook, Sultan said: "Although the global economy continues to be in stop and start mode, Agility is cautiously optimistic about its start to this year. We started out on a good note, driving margin expansion in GIL and revenue growth in our infrastructure portfolio."

"GIL will continue to sharpen its strategic focus in terms of customers, markets, and products, as well as build capacity in its business through operational transformation and a commitment to strong execution. The Infrastructure companies will each pursue their individual strategies, but we expect that as a group, they will remain and important and growing contributor to the group’s profitability," he added.