Agility reported a net profit of KD 12.9 million for the second quarter of 2014, an increase of 12 per cent compared to the second quarter of 2013. At KD 341.7, revenues for the second quarter decreased 4 per cent compared with the second quarter of 2013. A net profit of KD 12.9 million was reported, as compared to a net profit of KD 11.5 million during the second quarter of 2013. For the first half of the year, Agility reported a net profit of KD 24.1 million, an increase of 11 per cent compared to the first half of 2013.
“Agility continues to improve its financial performance, increasing profitability by 12 per cent in the second quarter despite ongoing sluggishness in the global economy and in demand for logistics services,” said Tarek Sultan, Chief Executive Officer of Agility. “GIL, our commercial logistics business, remains focused on the transformation of its operating platform, development of its sales and commercial strategy and increased cost discipline. Our Infrastructure portfolio of companies continue to be strong contributors, posting healthy growth once again.”
Sultan said Agility intends to continue delivering stakeholder value by driving change in its commercial logistics business and growing the Infrastructure group, while remaining open to acquisitions that make sense strategically.
Revenue for Agility’s Global Integrated Logistics (GIL) business for the second quarter of 2014 was KD 270.7 million. The 7 per cent decrease from Q2 2013 was a result of the challenging market conditions that affected the core freight forwarding business. GIL’s gross margins expanded to 24 per cent in Q2 2014 from 21 per cent in Q2 2013 as a result of good performance in contract logistics as well as good procurement efforts in airfreight. Ocean freight continues to be under margin pressure.
GIL’s continued performance is tied to its ability to execute its strategic priorities, which include commercial improvement across global accounts and field sales, product performance, and specialty business performance. In addition, GIL is working to transform itself through ongoing technology, process, and management change. Finally, GIL management knows it must maintain financial discipline and a lean and agile structure in line with business needs.
Agility’s Infrastructure companies contributed KD 70.1 million to second quarter 2014 revenues, a 23 per cent increase over Q2 2013. Infrastructure companies have always been strong contributors to the company’s financial performance. Each company has its own road map to drive growth and expand its customer base.
Agility Real Estate grew its revenues by 11 per cent in Q2 2014, compared to the same period in 2013. Agility Real Estate continues to explore growth opportunities in frontier emerging markets that need world-class industrial facilities.