Agility reported a net profit of KD 11.24 million, an increase of 11 per cent compared to the first quarter of 2013, on revenues of KD 314.28 million, an 11 per cent decrease compared to the same period last year.

“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. GIL performance this quarter is more mixed. GIL top line growth is challenged by market conditions that are affecting the industry overall. Going forward, top line growth within GIL is an important focus area,” said Tarek Sultan, Agility’s CEO.

Agility’s Global Integrated Logistics

Revenue for Agility Global Integrated Logistics (GIL) for the first quarter of 2014 was KD 253.30 million, a decrease of 15 per cent from Q1 2013. The drop in revenue is attributable to several factors, including difficult market conditions that have led to rate deterioration despite volume increases. The drop was partially mitigated by better procurement in the freight business, which led to margin expansion from 21 per cent in Q1 2013 to 23 per cent in this quarter.

Agility’s Infrastructure Group

Agility’s Infrastructure companies contributed KD 62.73 million to first quarter 2014 revenues, a 9 per cent increase over Q1 2013. Infrastructure companies continue to be strong contributors to the company’s financial performance. Agility Real Estate, the financial heavyweight in the Infrastructure group, grew its revenues by 14 per cent in Q1 2014, compared to the same period in 2013. Agility Real Estate continues to explore growth opportunities in frontier emerging markets with an under-served need for world-class industrial facilities.

Other Infrastructure companies are also working on growing their business and expanding their customer base in frontier emerging markets.