Agility reports mixed 2014 results

Agility has announced its full-year 2014 financial results. It reported 2014 revenues of KD1.36bn, a decline of 1% year-on-year. The company also recorded EBITDA of KD99.97m, a 6% increase compared to 2013’s result. Accordingly the company’s margin stood at 7.37%.

“Agility has steadily grown bottom-line profitability across its various business entities over the last three years. Agility will continue to drive margin expansion in its Global Integrated Logistics business by focusing on strengthening its operating platform, maintaining financial discipline, and focusing on high-growth markets, products, and verticals. We will also continue to grow our Infrastructure portfolio of companies, which are uniquely positioned to capture opportunities in niche segments in emerging markets. A key part of this growth will include accelerating our expansion on the African continent,” said Tarek Sultan, Agility’s Vice Chairman and CEO.

Agility’s Global Integrated Logistics (GIL) division’s revenue for the full year of 2014 was KD1 .06bn, a 6% decline from the same period of 2014. This reflected both general economic volatility and the winding down of major project logistics contracts held by Agility in countries like Australia and Papua New Guinea.

However GIL’s net revenue improved by 1% over 2014. Margins also expanded from 21.8% in 2013 to 23.4% in 2014. This was attributed primarily to two factors. Firstly, continued growth in contract logistics across the Middle East and Asia, where Agility opened new facilities, improved warehouse occupancy, and grew volumes from existing and new customers. Secondly, Agility’s air freight yields improved in 2014, offsetting some of the continued margin pressure on the ocean freight side.

In 2014, Agility’s Infrastructure group of companies saw revenues increase to KD302.90m, or by 18% year-on-year.

Revenues for Agility’s real estate business grew by 12% compared to the same period of 2013. Agility maintains a real estate platform in Kuwait, but is also developing holdings in other Gulf countries, South Asia, and Africa. This expansion is expected to deliver further growth for the company.

“Agility’s Infrastructure companies have historically performed well, and this year was no exception. We continue to believe in the long-term opportunities that the Infrastructure companies have to tap into niche segments in emerging markets across the Middle East, Asia, and Africa,” said Sultan.

“Agility has grown steadily for the last few years. We will continue to maintain discipline and focus on execution in our core logistics business, but at the same time are also investing for the future on the Infrastructure side.” concluded Sultan.