Agility reports $43 million net profit in Q1
Agility's longer-term target is to reach an EBITDA of US$800 million by 2020.
May 9, 2016
By PLA Editor
Agility Air & Cargo Services air cargo Air Cargo Asia air cargo freight Air Forwarding air freight Air Freight Asia Air Freight Logistics air freighter air freighting Air Logistics Asia Air Shipping Asia airlines cargo airways cargo asia cargo news cargo aviation Tarek Sultan
Agility today announced its financial results for the first quarter of 2016, reporting a net profit of KD13.1 million (US$43.45 million), an increase of 10.9 per cent compared with the first quarter of 2015. Revenue for the first quarter stood at KD 298.8 million, 6.1 per cent decrease versus the same period last year.
“Agility started the year on a good note. Net profit improved 10.9 per cent, despite challenging market conditions in the Eurozone, China and the Middle East,” said Tarek Sultan, Agility CEO. “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.”
Q1 revenue for Agility Global Integrated Logistics (GIL) stood at KD 225.8 million with net revenue improving by 0.6 per cent with margins expanding from 23.5 per cent in Q1 2015 to 26 per cent in Q1 2016.
“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 companies contributed KD 75.4 million to first quarter 2016 revenues, a 4.4 per cent increase over Q1 2015. 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.
“Agility’s Infrastructure portfolio of companies continues to be an important contributor to Agility’s financial performance,” said Sultan. “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.
“Our longer-term target is to reach an EBITDA of US$800 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,” Sultan said.