Agility net profit rises 11 per cent despite drop in revenue

The Kuwaiti logistics company Agility posted a 10.9 per cent increase in first-quarter net profit, but revenues fell due to lower income from its logistics business.

Net profit in the three months ending March 31 rose to 13 million Kuwaiti dinars (Dh158.5m), up from 11.8m dinars in the year-earlier period, the company said in a statement.

“Net profit improved 10.9 per cent, despite challenging market conditions in the Eurozone, China and the Middle East,” chief executive Tarek Sultan said. “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.”

Revenue declined 6 per cent to 298.8m dinars from 318m dinars a year earlier.

Agility, which is listed in Dubai and Kuwait, said overall revenues were impacted by lower revenue from its logistics business due to a global slowdown in trade.

Ebitda – earnings before tax, interest, taxes, depreciation and amortisation – in the first quarter rose 12 per cent to 26.2m dinars from 23.4m dinars in the year earlier period.

The firm is targeting Ebitda of US$800m by 2020.

Agility plans to borrow to partly fund $1.5 billion worth of investments in property and logistics to reach its 2020 target.

dalsaadi@thenational.ae

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