Agility Q1 net profit up 11pc
Kuwait, May 8, 2014
Agility, a leading logistics group, has a reported a net profit of KD11.24 million ($40 million) for the first quarter, up 11 per cent compared to KD10.13 million the same last year as cost savings helped to offset lower revenues.
Announcing the results, the Kuwait-based group said the earnings-per-share stood at 10.77 fils, however, the revenues for the first quarter fell 11 per cent to KD314.28 million compared to KD352.56 million last year.
The ebitda rose four per cent to KD22.48 million in the first quarter compared to last year.
CEO Tarek Sultan said: “Overall, Agility continues to improve its financial performance by focusing on growing its Infrastructure portfolio of companies and simultaneously driving transformation of its core commercial logistics (GIL) business. The Infrastructure companies started the year on a strong note, posting healthy revenue growth."
According to him, GIL performance this quarter was more mixed. "On one hand, GIL continues to make progress in transforming its underlying operating platform, sales and commercial strategy, and maintaining ongoing cost discipline. On the other hand, top line growth is challenged by market conditions that are affecting the industry overall," noted Sultan.
"Going forward, top line growth within GIL is an important focus area," he added.
The revenue for Agility Global Integrated Logistics (GIL) for the first quarter was KD253.3 million, down 15 per cent from last year.
This was mainly due to several factors, including difficult market conditions that have led to rate deterioration despite volume increases.
Agility, said Sultan, enjoys a healthy balance sheet, with a net cash position of KD88 million as of March 31, 2014, and free cash flow of KD6 million for the first quarter.
“Agility continues to deliver value to shareholders by pursuing three things in tandem. First, continuing to drive change in Global Integrated Logistics to maximize the potential of this business. Second, growing and developing our Infrastructure portfolio of companies to continue to take advantage of profitable niche market segments in fast-growing emerging markets. And third, staying open to acquiring high-performing businesses that realize immediate financial value for the company,” he added.-TradeArabia News Service