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Agility posts profit of KD 46.2m in ’13 Revenues total KD 1.4 billion

KUWAIT CITY, March 24: Agility (AGLTY) today announced its financial results for the fourth quarter 2013, reporting a net profit of KD 12.4 million, an increase of 29% compared to the fourth quarter of 2012. Revenues for the fourth quarter stand at KD 342.9 million, and EBITDA at KD 25.1 million.

Full year results 2013
For the full year ended December 31, 2013, net profits stand at KD 46.2 million, or 44.28 fils per share; an increase of 37% over the full year of 2012. Revenues and EBITDA were KD 1.4 billion and KD 94.0 million, respectively. The Board of Directors proposed a dividend distribution of 40% cash and 5% bonus shares for fiscal year 2013.  “Agility is continuing to gain strong ground. We will continue to grow along two main fronts. One, by improving performance in the core Global Integrated Logistics (GIL) business through technology-driven transformation, ongoing focus on global accounts and field sales, and maintaining financial discipline.

“Two, by growing the individual companies within our Infrastructure portfolio, expanding their geographic reach, and diversifying their customer base. “Our diversified business model allows us to hedge risk and take advantage of niche market segments in emerging markets, while making steady progress in improving our underlying business,” said Tarek Sultan, Agility’s CEO.  

Global Integrated Logistics
Revenue for Agility Global Integrated Logistics (GIL) for the full year 2013 was KD 1.13 billion, a decrease of 4.5% from FY 2012. Revenues declined due to underlying challenges in the freight forwarding industry, including difficult air freight conditions and falling ocean freight rates despite increased volume. That said, GIL improved its net revenues margin from 21% in 2012 to 22% in 2013 by driving productivity improvement in its business. “Going into 2014, our strategic priorities remain clear and consistent. We will continue to strengthen our sales channel strategy around global and strategic accounts and field sales, develop our trade lane program, and further sharpen our growth strategy in our Project Logistics business.

“We will build on the momentum we have gained in driving productivity improvements through technology-driven transformation, and continue to maintain financial discipline and a streamlined administrative structure. “Throughout, we will develop our people to lead against these objectives, and drive a culture of accountability across all parts of our business. The economic outlook may be uncertain, but we will continue to focus on what we can control,” said Sultan.

Infrastructure Group
Agility’s Infrastructure companies contributed KD 257.1 million to full year 2013 revenue, a 6% increase over 2012. Each Infrastructure business is different; with its own brand, management, and way forward. Agility Real Estate, the largest contributor to the Infrastructure group, grew its revenues by 16% in 2013, compared to 2012. Tristar, an integrated liquid fuels logistics company, achieved a 12.5% growth in 2013. National Aviation Services (NAS) and United Project for Aviation Services (UPAC) jointly achieved a 14% revenue growth in 2013. Significant contract wins achieved by the Infrastructure companies in 2013 included GCC Services’ $320 million contract to support peacekeeping operations in Darfur, NAS’s $200 million contract to manage three airports in Afghanistan, and Tristar’s $200 million contract to support a global oil major.

“Our Infrastructure companies are important to our overall growth strategy. They are strong contributors to financial performance in their own right, and they allow us to take advantage of niche market segments in emerging markets, where the risks and rewards tend to be higher,” said Sultan. “We have seen steady year on year growth in our portfolio of companies, and we are excited by the potential of other investments we have made, like KOREK, one of three telecommunication providers in Iraq, and our investment in Gulf Warehousing Company (GWC), the largest logistics player in Qatar.”         
 

Recap of Financial Performance for FY 2013
* Agility net profit stands at KD 46.2 million, a 37% increase from KD 33.7 million in 2012. EPS was 44.28 fils, compared to 32.21 fils a year earlier.

* EBITDA stands at KD 94.0 million, a 19% increase from the year before.

* Agility revenues for the FY 2013 are KD 1.37 billion, a decrease of 3% from KD 1.4 billion in the same period in 2012. Agility’s Net revenues increased by 4.4% over the same period.

* GIL revenue stands at KD 1.13 billion, a 4.5% decrease from KD 1.18 billion a year earlier.

* Infrastructure revenue was KD 257.1 million compared with KD 242.8 million a year earlier, a 6% increase from 2012.

* Agility enjoys a healthy balance sheet, with a net cash position of KD 82 million, and free cash flow of KD 57 million.

Forward View
“We promised our shareholders sustainable growth, and we are delivering on that promise. Going forward, we will continue to drive change in the Global Integrated Logistics (GIL) business so that it becomes a truly integrated network that performs on par with its peers. We will continue to develop and grow our Infrastructure portfolio of companies. And we will stay open to “opportunistic” acquisitions of high-performing, cash flow-positive businesses in emerging markets that realize immediate financial value for the company.  

We have come a long way as “Agility” in the seven years since we took that name and developed the brand. We look, feel, and are, very different from our competition. We are the only top industry player that got started outside of Western Europe or the U.S. Our heritage and coming-of-age was in emerging markets. Our culture is unique. We are open to opportunities in parts of the world where others are wary to operate, and we are willing to invest our capital in order to realize gains for our customers and our shareholders. We empower local management and encourage on-the-ground decision making that is fast and responsive to customer needs.

We understand the power of relationships. We believe in living personal service, for our customers and for our communities. And we are no strangers to change. We acquired more than 40 companies in less than a decade, and pivoted sharply to reshape our business after the global recession in 2008. As always, I would like to thank our shareholders, customers and employees for their continuous support,” said Sultan.

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