Agility has announced its 2015 financial results, reporting revenue of KWD1.3bn which represents a decline of 3.90% year-on-year. EBITDA remained unchanged year-on-year at KWD100m. Consequently, margin for the 2015 financial year stood at 7.67%.
For fourth quarter 2015, Agility reported revenue of KWD322m, representing a decline of 11.54% year-on-year. Again, EBITDA remained unchanged year-on-year and stood at KWD27m. Consequently, reported margin for Q4 2015 was 8.39%.
According to the announcement, Agility attributed the flat results to slower growth in emerging markets, ongoing sluggishness in the Eurozone, geopolitical instability in various parts of the world and the continuation of low oil prices. The company indicated a belief these were short-term problems. Following this, Agility reiterated a belief that in the medium to longer term the company would grow market share and footprint within emerging markets and a confidence that the established 2020 EBITDA target of $800m is still within reach.
Agility noted the growth in several areas of the business including the Infrastructure Group which increased 4% year-on-year to KWD314m in 2015. In the same period, revenues for Agility’s Real Estate business grew 9% from 2014. The company also noted a strong existing presence in Kuwait and development of the business in other parts of the Gulf region and Africa.
In further developments, Agility’s Real Estate business expects to open its first logistics and distribution park in Accra, Ghana shortly. National Aviation Services, Agility’s aviation services company, recently secured a contract to provide services in Abidjan, Ivory Coast. It has also been announced that Agility has expanded its footprint in Latin America with the addition of company-owned operations in Colombia.
Agility CEO, Tarek Sultan said of the results, “Agility made good progress in 2015 but still has a demanding road ahead to make it the leading company we all desire. In 2015, we were able to generate KWD105m cash from operations, a 68% improvement from last year. We improved our free cash flow by KWD6m to reach KWD31m in 2015, despite challenging economic times. Our longer-term target is to reach an EBITDA of USD 800 million by 2020. 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.”