Agility reported profits for the third quarter of 2014 of KD 13.04 million, an increase of 7 per cent from the same period in 2013. Revenues were KD 337.09 million, a 3 per cent increase from the same period a year earlier.
“Agility continues to grow the bottom line with all entities showing improvements in their financial performance. Agility’s Global Integrated Logistics (GIL) business, its core commercial business, saw revenues contract because of the winding down of major project logistics contracts. At the same time, net margins were improved by boosting commercial performance in other areas and realizing gains in technology-driven transformation and productivity initiatives. Agility Infrastructure companies continue to grow, fueled by new opportunities in the Middle East and Africa,” said Tarek Sultan, Agility’s Chief Executive Officer.
Agility’s Global Integrated Logistics (GIL)
GIL revenue for the third quarter of 2014 was KD 267.80 million, a 4 per cent decline from the same period last year. However, net revenues after operating expenses improved by 2.2 per cent, with margins expanding from 21.8 per cent in Q3 2013 to 23.34 per cent in Q3 2014, driven by better performance of contract logistics specifically in the Middle East.
Tarek Sultan added: “We have managed to stay agile and responsive in a world where growth is slowing, trade patterns are changing and competition is intensifying. We have shown good progress in our technology driven transformation, where we are building a new operating system aimed at improving productivity, service and growth. On the commercial side, we have a sales strategy aimed at both global accounts and field sales that allows us to stay close to customers and evolve our service offerings to meet their needs. We remain committed to financial disciplines that allow us to run a lean, efficient business.”
Agility’s Infrastructure Group
Agility’s Infrastructure companies contributed KD 69.39 million to third quarter 2014 revenues, representing a 16 per cent increase over Q3 2013. Agility Real Estate grew revenue by 11 per cent this quarter compared with the same period last year.
“Agility Infrastructure companies posted strong results this quarter and are expected to continue to grow through investments in emerging markets,” Sultan said. “Agility sees Africa as a major opportunity for all of its business going forward.”
Among the major recent business developments and new contracts for the Infrastructure Group: a $250 million concession won by Agility’s National Aviation Services (NAS) for ground handling at Port Bouet Airport, the primary international airport into Abidjan, Ivory Coast; an $82.5 million contract awarded by UK Ministry of Defense to Agility DGS for the management of household moves for the UK forces and Ministry of Defense personnel; an investment agreement by United Projects for Aviation Services (UPAC) develop a commercial mall in Abu Dhabi.