KUWAIT: Agility yesterday announced its financial results for the first quarter of 2016, reporting a net profit of KD 13.1 million, an increase of 10.9 percent compared with the first quarter of 2015. Earnings-per-share stood at 11.4 fils, and EBITDA increased by 12.1 percent, to KD 26.2 million, compared with Q1 2015. Revenue for the first quarter stood at KD 298.8 million, 6.1 percent decrease vs. the same period last year.
“Agility started the year on a good note. Net profit improved 10.9 percent, despite challenging market conditions in the Eurozone, China and the Middle East. Our efforts to define a clearer strategy and improve execution are paying off in stronger customer relationships, an expanding emerging market footprint, a sharper focus, and a more disciplined management approach,” said Tarek Sultan, Agility CEO.
Agility global integrated logistics
Q1 revenue for Agility Global Integrated Logistics (GIL) stood at KD 225.8 million. Net revenue improved by 0.6 percent with margins expanding from 23.5 percent in Q1 2015 to 26.0 percent in Q1 2016. “There were two major drivers for net revenue improvement in GIL this quarter. First, continued growth in contract logistics. Agility has a strong contract logistics footprint in the Middle East, Asia Pacific that is serving growing consumer demand in these markets. Second, improved yields in the freight forwarding business,” Sultan said.
Agility’s Infrastructure Group
Agility’s Infrastructure companies contributed KD 75.4 million to first quarter 2016 revenues, a 4.4 percent increase over Q1 2015.
The companies provide a broad spectrum of logistics-related services including: bulk fuel storage and transport, industrial real estate; airport and ground handling services; and commercial real estate and facilities management.
“Agility’s Infrastructure portfolio of companies continues to be an important contributor to Agility’s financial performance,” said Sultan. “We continue to invest and grow these companies and are seeing these efforts pay off, particularly in the areas of Industrial real estate, ground handling and fuel logistics.
Recap of Financial Performance for Q1 2016
* Agility’s net profit stood at KD 13.1 million, a 10.9 percent increase from KD 11.8 million in Q1 2015. EPS were 11.4 fils, compared with 10.3 fils a year earlier.
* EBITDA stood at KD 26.2 million, a 12.1 percent increase from the same period a year before.
* Agility’s revenue for Q1 2016 was KD 298.8 million, a 6.1 percent decrease from KD 318.1 million in the same period in 2015 mainly attributable to GIL’s revenue decline that is related to the slowing down of the global trade.
* Agility’s net revenue increased by 8.8 percent over the same period
* Agility’s GIL revenue stood at KD 225.8 million.
* Agility Infrastructure revenue was KD 75.4 million compared with KD 72.2 million in Q1 2015, a 4.4 percent increase from Q1 2015.
* Agility enjoys a healthy balance sheet, with a net cash position of KD 13.8 million. Cash generated from operations stood at KD 30.1 million a growth of 19.3 percent as compared to Q1 2015 and witnessed a strong EBITDA to operating cash conversion of 114.7 percent. Free cash flow stood at KD 9.1 million with an EBITDA to free cash flow conversion of 34.7 percent.
“Our longer-term target is to reach an EBITDA of $ 800.0 million by 2020. We have a demanding road ahead to achieve this target, but have also defined a clear strategy and roadmap to meet this goal. We continue to improve our financial performance by focusing on growing our Infrastructure portfolio of companies and simultaneously driving transformation of our core commercial logistics (GIL) business,” Sultan said. “As always, we would like to thank our employees, our customers, our partners and our shareholders for their support of our journey.”