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Agility net profit increases 5pc to US$59.3 million as revenues decline 4pc

KUWAITI global logistics provider Agility has posted five per cent year-on-year net profit increase to KWD53 million (US$59.3 million) in 2015, drawn on revenues of KWD1.3 billion, down four per cent.

For fourth quarter 2015, Agility reported a net profit of KWD14 million, a year-on-year increase of five per cent, drawn on revenue of KWD322 million and EBITDA of KWD27 million.

The board announced that Agility will engage in buyback programme to repurchase up to 10 per cent of its capital in compliance with the rules and the regulations set forth by regulatory authorities.

"The decision demonstrates our belief that the true value of the company is greater than the current market value," said Agility CEO Tarek Sultan.

Mr Sultan said Agility made good progress in 2015, but faced challenges ahead.

"In 2015, we were able to generate KWD105 million cash from operations, a 68 per cent improvement from last year. We improved our free cash flow by KWD6 million to reach KWD31 million in 2015, despite challenging economic times," he said.

"Our longer-term target is to reach an EBITDA of US$800 million by 2020 [It is KWD100 a year today}. 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," Mr Sultan said.

Agility's Global Integrated Logistics' (GIL) roadmap remains the same, he said. "Its aim is to improve operational performance through technology-driven transformation and better efficiency.

"We continue to believe in the long-term opportunities that the infrastructure companies have to tap into niche segments in emerging markets," Mr Sultan said.

Agility expects to open its first logistics and distribution park in Accra, Ghana shortly, said the company statement, adding that National Aviation Services, Agility's aviation services company, recently secured a contract to provide services in Abidjan, Ivory Coast.

UPAC, which specialises in real estate development and facilities management, has entered into a partnership to develop the Reem Mall on Abu Dhabi's Reem Island.

"For 2016, we see a mixed picture clouded by slower growth in emerging markets, ongoing sluggishness in the Eurozone, geopolitical instability in various parts of the world, and the continuation of low oil prices," Mr Sultan said.

"Given those conditions, we know we have to stay focused and disciplined. But in the medium to longer term, we believe in our ability to grow our market share and footprint in emerging markets to serve growing consumer demand," he said.

Agility is a publicly traded company on the Kuwait Stock Exchange and the Dubai Financial Market, with more than US$4.4 billion in revenue and more than 22,000 employees in over 500 offices across 100 countries.