Agility results Q1 2013

31 March 2013

Agility (AGLTY), a leading global logistics provider, today announced its financial results for the first quarter of 2013. The company reported a net profit of KD 10.1 million and earnings per share (EPS) of 10.19 fils, up 46% and 47% respectively over the same period last year. Revenue and EBITDA stand at KD 352.6 million and KD 21.6 million, respectively, up 10% and 36% over Q1 of 2012.

“We are pleased to report that we are continuing on a healthy growth trajectory,” said Tarek Sultan, Agility’s Chairman and Managing Director. 2013 has started off on the right track and we are making progress against our goals in both the core commercial business and our Infrastructure group of companies.”

Agility’s Core Business: Global Integrated Logistics

Revenue for Agility Global Integrated Logistics (GIL) for the full year 2012 was KD 1.18 billion, an increase of 2.2% from FY 2011.

GIL has shown an improvement in its operational and financial performance during 2012. This has been driven by focused execution of its core strategy: to leverage its global footprint and market-leading position in emerging markets; grow business with existing and new customers; concentrate on key global accounts and strategic trade lanes; maintain financial discipline; and achieve productivity gains through technological transformation.

“Agility’s GIL business will to some extent always be tied to the global economy and trade volumes; which continue to be volatile. That said, our approach is to focus on what we can control. Our goal is to realize GIL’s full potential over the next three to five years, by maintaining our momentum when it comes to executing against our core strategy. Although we still have work ahead, GIL has made significant progress in becoming a more efficient, productive, and customer-focused business. GIL’s competitive advantage going forward is its strong platform in emerging markets, which continue to drive global growth.”

Agility’s Infrastructure Group: Logistics-Related Businesses

Agility’s Infrastructure companies contributed KD 243 million to full year 2012 revenue, a 19% increase over 2011.

Agility’s Infrastructure companies continue to occupy profitable niches in the marketplace; serving as a healthy hedge against volatility in the global economy because they are in relatively stable, high-growth sectors in emerging markets.

Agility’s Real Estate business remains the main contributor to the Infrastructure group. By focusing on revenue enhancement and improving utilization, Agility Real Estate has grown its revenue by 12% in 2012. Tristar, a fuel transport company, and National Aviation Services, a ground handling company, are also significant contributors to the Infrastructure group, improving their revenue in 2012 by 44% and 32% respectively. Other entities within Agility’s Infrastructure portfolio have also shown growth over the last several years. The company is taking a number of actions to further enhance the potential of these companies.


Agility remains open to investing in businesses that are operationally and financially healthy, under its Infrastructure portfolio. In 2012, Agility acquired an 88.2% stake in United Projects for Aviation Services (UPAC). UPAC manages commercial real estate at the Kuwait International Airport and various ground handling and maintenance services at the private terminal of the airport.

Recap of Financial Performance for FY 2012

- Agility net profit stands at KD 34.3 million, a 27% increase from KD 27 million in 2011. EPS was 34.42 fils, compared to 26.94 fils a year earlier.
- EBITDA stands at KD 79.4 million, a 36% increase from the year before
- Operating expenses decreased by 7.5% when compared to 2011
- Agility revenue for FY 2012 is KD 1.4 billion, an increase of 7% from KD 1.3 billion in the same period in 2011.
- GIL revenue stands at KD 1.18 billion, a 2.2% increase from KD 1.15 billion a year earlier.
- Infrastructure revenue was KD 243 million compared with KD 204 million a year earlier, a 19% increase from 2011.
- Agility enjoys a healthy balance sheet, with low leverage, a net cash position of KD 64 million, and free cash flow of KD 45 million.

Forward View

“We commit to our stakeholders that we are building a business that is strong and stable, by anyone’s measure,” said Sultan.

“Our strategy going forward is two-fold: within Agility’s core GIL business, it is to realize value by focusing on executing our commercial strategy, maintaining financial discipline and accelerating technological transformation to drive productivity and customer-service. Within the Infrastructure group of companies, our strategy is to grow the individual potential of our portfolio companies.”

“Throughout this process to drive ongoing improvement, we will continue to remain focused on our customers. Efficient, personal, customized partnership, especially in emerging markets, is the bedrock of our business. I also want to recognize and thank our employees. Our people define our character, our performance and the specialized knowledge that differentiates us a company.”