Agility sees 1H profit up 11% in sluggish markets
Agility has announced its financial results for the second quarter of 2014, reporting a net profit of KD 12.9 million (US$45.5 million), an increase of 12 per cent compared to the second quarter of 2013.
August 11, 2014
By Donald Urquhart
Agility has announced its financial results for the second quarter of 2014, reporting a net profit of KD 12.9 million (US$45.5 million), an increase of 12 per cent compared to the second quarter of 2013. Revenues for the second quarter stand at KD 341.7 million, a four per cent decrease compared to the same period last year. EBITDA stands at KD 25.1 million, a six per cent 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 per cent compared to the first half of 2013. “Agility continues to improve its financial performance, increasing profitability by 12 per cent in the second quarter despite ongoing sluggishness in the global economy and in demand for logistics services,” said Tarek Sultan, CEO 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.
Revenue for Agility Global Integrated Logistics (GIL) for the second quarter of 2014 was KD 270.7 million. The decrease of seven per cent from Q2 2013 was a result of the challenging market conditions that affected the core freight forwarding business, the group said. GIL’s net revenue margins expanded to 24 per cent in Q2 2014 from 21 per cent in Q2 2013 as a result of good performance in contract logistics, as well as good procurement efforts in air freight business. Agility enjoys a healthy balance sheet, with a net cash position of KD 51 million as at 30 June 2014 and free cash flow of KD 5.7 million for the second quarter of 2014.