Agility reports flat Q2 results

Agility has announced its financial results for the second quarter of 2015. It reported revenue of KD328.4m, a fall of 4% year-on-year. The company also recorded EBITDA of KD25.5m, an increase of 1% compared to Q2 of 2014. Accordingly the company’s margin stood at 7.76%.

“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 there is an emphasis on improving efficiency and growing potential through regional and customer expansion.”

Revenue for Agility Global Integrated Logistics (GIL) for the second quarter of 2015 was KD259.0m, a 4% decline from Q2 of 2014. Agility stated that GIL’s revenues were negatively impacted by currency volatility and that, when adjusted at constant currency rates, GIL revenues decreased by 1% compared to the same period of 2014. This slight revenue decline was attributed to the general logistics market performance and also the planned end of some large contracts.

Agility stated that 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, resulted in margin expansion within GIL to 25% in Q2 2015.

Agility’s Infrastructure companies contributed KD71.1m 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.

“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.