Agility announced its financial results for the second quarter of 2015, reporting a net profit of KD 13.5 million, an increase of 5 per cent compared to the second quarter of 2014. Revenues of KD 328.4 were reported, a decrease of KD 13.3 million compared to the second quarter of 2014.
“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, however, there is an emphasis on improving efficiency and growing potential through regional and customer expansion.”
Agility’s Global Integrated Logistics
Negatively impacted by currency volatility, revenue for Agility Global Integrated Logistics (GIL) for the second quarter of 2015 was KD 259.0 million, a 4 per cent decrease from Q2 of 2014. 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, has resulted in margin expansion within GIL. Net revenues increased by 1 per cent.
Agility’s Infrastructure Group
Agility’s Infrastructure companies contributed KD 71.1 million to second quarter 2015 revenues. Net revenues for this group of companies showed an 8 per cent increase over the same period last year. Agility Real Estate, the largest contributor in the group, grew its revenues by 10 per cent 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.