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Agility records Q1 net profit of KD 11.24 mln, up 11% y/y EPS clocks 10.77 fils; EBITDA rises 4% to KD 22.48 mln

KUWAIT CITY, May 8: Agility announced its financial results for the first quarter of 2014, reporting a net profit of KD 11.24 million, an increase of 11% compared to the first quarter of 2013. Earnings-per-share stand at 10.77 fils. Revenues for the first quarter stand at KD 314.28 million, an 11% decrease compared to the same period last year. EBITDA stands at KD 22.48 million, a 4% increase compared to Q1 of 2013. “Overall, Agility continues to improve its financial performance by focusing on growing its Infrastructure portfolio of companies and simultaneously driving transformation of its core commercial logistics (GIL) business. The Infrastructure companies started the year on a strong note, posting healthy revenue growth. GIL performance this quarter is more mixed. On one hand, GIL continues to make progress in transforming its underlying operating platform, sales and commercial strategy, and maintaining ongoing cost discipline. On the other hand, top line growth is challenged by market conditions that are affecting the industry overall. Going forward, top line growth within GIL is an important focus area,” said Tarek Sultan, Agility’s CEO.

Revenue for Agility Global Integrated Logistics (GIL) for the First quarter of 2014 was KD 253.30 million, a decrease of 15% from Q1 2013. The drop in revenue is attributable to several factors, including difficult market conditions that have led to rate deterioration despite volume increases.   The drop was partially mitigated by better procurement in the freight business, which led to margin expansion from 21% in Q1 2013 to 23% in this quarter.

GIL’s priority areas of focus remain consistent. First, is to continue to drive commercial improvement across its global accounts and field sales, product performance, and specialty businesses. Second, is to transform the underlying business through ongoing technology, process and management improvements. Third, is to maintain financial discipline and a lean and agile structure that is in line with business needs.  
Agility’s Infrastructure companies contributed KD 62.73 million to first quarter 2014 revenues, a 9% increase over Q1 2013.
 

Infrastructure companies continue to be strong contributors to the company’s financial performance. Agility Real Estate, the financial heavyweight in the Infrastructure group, grew its revenues by 14% in Q1 2014, compared to the same period in 2013. Agility Real Estate continues to explore growth opportunities in frontier emerging markets with an under-served need for world-class industrial facilities.
Other Infrastructure companies are also working on growing their business and expanding their customer base in frontier emerging markets.
 

Recap of Financial Performance for Q1 2014
* Agility’s net profit stands at KD 11.24 million, an 11% increase from KD 10.13 million in Q1 2013. EPS was 10.77 fils, compared to 9.71 fils a year earlier.
* EBITDA stands at KD 22.48 million, a 4% increase from the same period a year before.
* Total SG&A decreased by 8% in Q1 2014 compared to Q1 2013.
* Agility’s revenues for the Q1 2014 are KD 314.28 million, a decrease of 11% from KD 352.56 million in the same period in 2013. Agility’s net revenues decreased by 3% over the same period.
* GIL’s revenue stands at KD 253.30 million, a 15% decrease from KD 297.0 million a year earlier.
* Infrastructure’s revenue was KD 62.73 million compared with KD 57.58 million in Q1 2013, a 9% increase from Q1 2013.
* Agility enjoys a healthy balance sheet, with a net cash position of KD 88 million as of 31st March 2014, and free cash flow of KD 6 million for the 1st quarter 2014.
 “Agility continues to deliver value to shareholders by pursuing three things in tandem. First, continuing to drive change in Global Integrated Logistics to maximize the potential of this business. Second, growing and developing our Infrastructure portfolio of companies to continue to take advantage of profitable niche market segments in fast-growing emerging markets. And third, staying open to acquiring high-performing businesses that realize immediate financial value for the company,” said Sultan.
“As always, we thank our shareholders for their trust, our employees for their hard work and commitment, and our customers for the opportunity to help support their growth.”




 

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