The Sulaibiya, Kuwait-based integrated logistics provider posted a net profit of 13.1 million Kuwaiti Dinars (U.S. $43.47 million) in first quarter 2016 despite revenues falling 6.1 percent year-over-year to 298.8 million Kuwaiti Dinars.
Agility grew its net profits in the first quarter of 2016 10.9 percent to 13.1 million Kuwaiti Dinars (U.S. $43.47 million) compared with the first quarter of 2015, according to the company’s latest financial statements.
The Sulaibiya, Kuwait-based integrated logistics provider achieved the earnings growth despite first quarter revenues falling 6.1 percent year-over-year to KD 298.8 million. Earnings per share stood at 11.4 fils per share, up from 10.3 fils per share in first quarter 2015.
“Agility started the year on a good note,” CEO Tarek Sultan said of the results. “Net profit improved 10.9%, despite challenging market conditions in the Eurozone, China and the Middle East. Our efforts to define a clearer strategy and improve execution are paying off in stronger customer relationships, an expanding emerging market footprint, a sharper focus, and a more disciplined management approach.”
The company attributed the drop in revenues primarily to a decline in revenues at Agility’s Global Integrated Logistics (GIL) segment, which was caused by slowing global trade.
The GIL business unit posted revenues of KD 225.8 million, while Agility’s infrastructure companies contributed KD 75.4 million to first quarter 2016 revenues, a 4.4 percent increase from the same 2015 period.
“There were two major drivers for net revenue improvement in GIL this quarter. First, continued growth in contract logistics. Agility has a strong contract logistics footprint in the Middle East, Asia Pacific that is serving growing consumer demand in these markets. Second, improved yields in the freight forwarding business,” Sultan said.
“Agility’s Infrastructure portfolio of companies continues to be an important contributor to Agility’s financial performance,” he added. “We continue to invest and grow these companies and are seeing these efforts pay off, particularly in the areas of Industrial real estate, ground handling and fuel logistics.”
Looking ahead to the rest of 2016 and beyond, Sultan said, “Our longer-term target is to reach an EBITDA of USD 800.0 million by 2020. We have a demanding road ahead to achieve this target, but have also defined a clear strategy and roadmap to meet this goal. We continue to improve our financial performance by focusing on growing our Infrastructure portfolio of companies and simultaneously driving transformation of our core commercial logistics (GIL) business.”
Agility grows earnings 10.9% in Q1
