Figures in the table above have been rounded.
Agility’s Financial Results for Q2 2015
Agility today announced its financial results for the second quarter of 2015, reporting a net profit of KD 13.5 million, an increase of 5% compared to the second quarter of 2014. Earnings-per-share stand at 11.79 fils. EBITDA stands at KD 25.5 million, a 1% increase compared to Q2 of 2014.
“The global logistics market is a mixed bag in terms of growth, with continued sluggishness in China and Europe; and ongoing pressure on rates. In this environment, we are pleased to report that Agility continues to post steady growth in profitability. Agility’s Global Integrated Logistics business continues to drive margin expansion through commercial transformation, financial discipline, and productivity improvements powered by technology,” said Tarek Sultan, Agility’s CEO. “Agility’s Infrastructure group of companies, which capture investment opportunities in niche logistics-related segments in emerging markets, each have their own strategy. Across the board, however, there is an emphasis on improving efficiency and growing potential through regional and customer expansion.”
Agility’s Global Integrated Logistics
Revenue for Agility Global Integrated Logistics (GIL) for the second quarter of 2015 was KD 259.0 million, a 4% decrease from Q2 of 2014; GIL’s revenues were negatively impacted by currency volatility. Adjusted at constant currency rates, GIL revenues have decreased by 1% compared to the same period last year. This slight revenue decline is a result of the general logistics market performance and also the planned end of some large contracts.
The freight forwarding market showed mixed performance in the second quarter of the year relative to the beginning of the year, with a softer air freight market and consistent ocean freight market. The contract logistics market, especially in emerging economies, continues to grow however. This growth in contract logistics demand, coupled with improved yields in Agility’s air freight business, and better commercial disciplines, has resulted in margin expansion within GIL. Net revenue has increased by 1% (adjusted at constant currency rates: +3%), with margins expanding from 24% in Q2 2014 to 25% in Q2 2015.
GIL’s road map remains consistent. First, continue to drive commercial improvement through a trade lane and sales force management approach. Second, continue transforming the underlying business through ongoing technology, process and management improvements. Third, maintain financial discipline and a lean and agile structure that is in-line with business needs. “We feel confident in both our strategy and in our investment in building the disciplines to execute the strategy,” said Tarek Sultan.
Agility’s Infrastructure Group
Agility’s Infrastructure companies contributed KD 71.1 million to second quarter 2015 revenues. Net revenues for this group of companies showed an 8% increase over the same period last year. Agility Real Estate, the largest contributor in the group, grew its revenues by 10% in Q2 2015, compared to the same period in 2014. Other Infrastructure companies have also reported healthy growth in this quarter and are making progress in new customer acquisition and geographic expansion.
“The infrastructure group will remain an important and growing contributor to the group’s profitability, with each entity pursuing its individual strategy to grow and expand. Most have a strong foundation in the Middle East, and are actively engaging with opportunities to grow in the region, Africa, and elsewhere,” said Sultan.
Recap of Financial Performance for Q2 2015
– Agility’s net profit stands at KD 13.5 million, a 5% increase from KD 12.8 million in Q2 2014. EPS stands at 11.79 fils, compared to 11.18 fils a year earlier.
– EBITDA stands at KD 25.5 million, a 1% increase from the same period a year before.
– Agility’s revenues for Q2 2015 are KD 328.4 million, a decrease of 4% from KD 341.7 million in the same period in 2014. Agility’s net revenues have increased by 3% over the same period.
– GIL’s revenue stands at KD 259.0 million, adjusted at constant currency rates represents a decrease of 1% compared to the same period in 2014 (a 4% decrease on a reported basis).GIL’s revenue stands at KD 259.0 million, adjusted at constant currency rates represents a decrease of 1% compared to the same period in 2014 (a 4% decrease on a reported basis).
– Infrastructure’s revenue was KD 71.1 million compared with KD 72.7 million in Q2 2014. The Infrastructure group’s NR has shown an 8% increase over the same period last year.
– Agility enjoys a healthy balance sheet, with a net cash position of KD 17 million as of 30th June 2015.Agility enjoys a healthy balance sheet, with a net cash position of KD 17 million as of 30th June 2015.
“The external market environment will continue to be a challenge for the foreseeable future with economic growth slowing in some countries, but improving in others. While we cannot control these external factors, we will be strategic in our investment choices, focusing on countries, verticals, and products that have long-term potential. We will also continue to drive internal transformation efforts to operate more effectively and profitably, within individual businesses and as a company overall,” said Tarek Sultan. “As always, I would like to thank our team of 20,000+ employees for their commitment, our 60,000 customers in more than 100 countries for their patronage, and our partners for their ongoing engagement and support.”