Agility reported a net profit of KD 50.84 million for the year ended December 31, 2014, an increase of 10 per cent over the same period in 2013. Reported revenues for the year were KD 1.36 billion, a decline of 1 per cent. EBITDA of KD 99.97 million was reported, a 6 per cent increase compared to 2013.
For the fourth quarter of 2014, Agility reported a net profit of KD 13.70 million, an increase of 10 per cent over the same period in 2013. Revenue for the quarter amounted to KD 364.29 million, a 6 per cent increase when compared to the Q4 of 2013.
As of December 31, 2014, Agility’s net cash position stood at KD 60 million, and free-cash-flow for the year was KD 24.7 million.
“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)
GIL revenue for the full year of 2014 was KD 1.06 billion, a 6 per cent decline from the same period last year. This reflects both general economic volatility and the winding down of major project logistics contracts held by Agility in countries like Australia and Papua New Guinea.
That said, GIL’s margins expanded from 21.8 per cent in 2013 to 23.4 per cent in 2014. This is attributed primarily to 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. In addition, Agility’s air freight yields improved in 2014, offsetting some of the continued margin pressure on the ocean freight side.
Agility’s Infrastructure Group
In 2014, Agility’s Infrastructure group of companies saw revenues increase by 18 per cent to KD 302.90 million, when compared with the full year of 2013.
Revenues for Agility’s real estate business grew by 12 per cent. Agility maintains a strong real estate platform in Kuwait, but is also actively developing holdings in other Gulf countries, the subcontinent, and Africa. In 2014, Agility broke ground on an Agility Distribution Park in Ghana, the first of a series of logistics hubs across the African continent that will provide international-standard logistics infrastructure to local, regional and global companies.
“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. “We add value to our customers by being willing to go in early, investing in infrastructure that enables trade, building local capacity, and continuing to deliver even through the tough times.”
Africa is an area of focus for Agility’s businesses across the board. Global Integrated Logistics has operational capacity in 11 Africa countries and is planning to expand further, and our Project Logistics division has long-solved complex supply chain challenges for the oil and gas industry in West Africa. In addition, in 2014, National Aviation Services expanded its ground handling footprint on the continent with a new concession in the Ivory Coast. Tristar, a fuel logistics company, owns and operates more than 30 terminals in Africa with more than 60 million litres in storage capacity. Agility recently opened new business development offices in Mozambique and Ghana with a view to offering truly integrated solutions across its various lines of business.