Agility’s Financial Results for Q2 2014

Agility today announced its financial results for the second quarter of 2014, reporting a net profit of KD 12.9 million, an increase of 12% compared to the second quarter of 2013. Earnings-per-share stand at 11.74 fils. Revenues for the second quarter stand at KD 341.7 million, a 4% decrease compared to the same period last year. EBITDA stands at KD 25.1 million, a 6% increase compared to Q2 of 2013.

For the first half of the year, Agility reported a net profit of KD 24.1 million, an increase of 11% compared to the first half of 2013. Earnings-per-share stand at 22 fils.

“Agility continues to improve its financial performance, increasing profitability by 12% in the second quarter despite ongoing sluggishness in the global economy and in demand for logistics services,” said Tarek Sultan, Chief Executive Officer of Agility. “GIL, our commercial logistics business, remains focused on the transformation of its operating platform, development of its sales and commercial strategy and increased cost discipline. Our Infrastructure portfolio of companies continue to be strong contributors, posting healthy growth once again.”

Sultan said Agility intends to continue delivering stakeholder value by driving change in its commercial logistics business and growing the Infrastructure group, while remaining open to acquisitions that make sense strategically.

Agility’s Global Integrated Logistics

Revenue for Agility Global Integrated Logistics (GIL) for the second quarter of 2014 was KD 270.7 million. The decrease of 7% from Q2 2013 was a result of the challenging market conditions that affected the core freight forwarding business.

GIL’s net revenue margins expanded to 24% in Q2 2014 from 21% in Q2 2013 as a result of good performance in contract logistics as well as good procurement efforts in air freight business. Margin pressure within ocean freights is still continuing.

GIL’s continued performance is tied to its ability to execute its strategic priorities. They include commercial improvement across global accounts and field sales, product performance, and specialty business performance. In addition, GIL is working to transform itself through ongoing technology, process, and management change. Finally, GIL management knows it must maintain financial discipline and a lean and agile structure in line with business needs.

Agility’s Infrastructure Group

Agility’s Infrastructure companies contributed KD 70.1 million to second quarter 2014 revenues, a 23% increase over Q2 2013.

Infrastructure companies have always been strong contributors to the company’s financial performance. Each company has its own road map to drive growth and expand its customer base.

Agility Real Estate grew its revenues by 11% in Q2 2014, compared to the same period in 2013. Agility Real Estate continues to explore growth opportunities in frontier emerging markets that need world-class industrial facilities.

Recap of Financial Performance for Q2 2014

  • Agility’s net profit stands at KD 12.9 million, a 12% increase from KD 11.5 million in Q2 2013. EPS was 11.74 fils, compared to 10.5 fils a year earlier.
  • EBITDA stands at KD 25.1 million, a 6% increase from the same period a year before.
  • Agility’s revenues for the Q2 2014 are KD 341.7 million, a decrease of 4% from KD 355.2 million in the same period in 2013. Agility’s net revenues increased by 5% over the same period.
  • GIL’s revenue stands at KD 270.7 million, a 7% decrease from KD 292.1 million a year earlier.
  • Infrastructure’s revenue was KD 70.1 million compared with KD 57.1 million in Q2 2013, a 23% increase from Q2 2013.
  • Agility enjoys a healthy balance sheet, with a net cash position of KD 51 million as of 30th June 2014, and free cash flow of KD 5.7 million for the 2nd quarter of 2014.