Agility today announced its financial results for the second quarter of 2016, reporting a net profit of KD 15 million, an increase of 11% compared to the second quarter of 2015. Earnings-per-share stood at 13.06 fils, and EBITDA stood at KD 29 million, a 12% increase compared to Q2 of 2015. Revenues were KD 309 million for the quarter.
“We started the year on a good note and are sustaining this momentum as the year progresses. Within our Global Integrated Logistics business, we are making gains even in the face of a challenging freight forwarding market 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’s CEO. “Companies in the Agility Infrastructure group continue to grow as we tap into excellent opportunities in emerging markets and focus on improving efficiency across the board.”
Agility’s Global Integrated Logistics
Q2 revenue for Agility Global Integrated Logistics (GIL) stood at KD 233 million, a 10% decrease from Q2 of 2015, mainly due to the low shipping and fuel rates in the market. Net revenue remained flat when adjusted at constant currency rates, with margins expanding from 25% in Q2 2015 to 27% in Q2 2016.
“’Subdued’ trade forecasts for the year, to quote the WTO, continue to impact the freight forwarding market. However, Agility GIL was able to record volume growth in its core air and ocean markets and is focusing on products and markets that are growing despite sluggish overall volumes. Growing demand for contract logistics in emerging markets – an area that Agility has long-established market leadership in – coupled with improved yields in the freight business and better commercial discipline has resulted in margin expansion within GIL,” said Sultan.
Agility’s Infrastructure Group
Agility’s Infrastructure group of companies contributed KD 80 million to second quarter 2016 revenues, a 12% increase compared to the same period of last year.
The companies provide a broad spectrum of logistics-related services including: bulk fuel storage and transport, industrial real estate; airport and ground handling services; and commercial real estate and facilities management.
“The Infrastructure group continued to show growth in this quarter, driven by new projects and a commitment to improving efficiency and productivity. Each entity is pursuing its individual strategy, with most companies using their strong foundation in the Middle East to actively pursue opportunities to grow in the region, Africa, and elsewhere,” Sultan said.
Recap of Financial Performance for Q2 2016
- Agility’s net profit stood at KD 15 million, an 11% increase from KD 14 million in Q2 2015. EPS stood at 13.06 fils, compared to 11.79 fils a year earlier.
EBITDA stood at KD 29 million, a 12% increase from the same period a year before.
- Agility’s revenues for Q2 2016 were KD 309 million, a decrease of 6% from KD 328 million in the same period in 2015. Agility’s net revenues have increased by 4% over the same period.
- GIL’s revenue stood at KD 233 million a 10% decrease from same period last year
Infrastructure’s revenue stood at KD 80 million, compared with KD 71 million in Q2 2015, a 12% increase.
- Agility net debt position of KD 46 million as of 30th June 2016.
“Although the external market environment continues to be a challenge, particularly to our commercial logistics business, we are continuing to improve our financial performance by growing our Infrastructure portfolio of companies and simultaneously driving transformation of our GIL business,” said Sultan. We remain committed to meeting the expectations of our shareholders, customers, and employees, and as always, thank them for their support.”
Investor Relations Department