Lower gross revenues for Agility, the Kuwait-based integrated logistics provider, did not put a damper on the company’s 5 percent year-over-year jump in 2015 net profit, which grew to US$175 million.
The group blamed “challenging market conditions and exposure to currency fluctuations” for the drop in gross revenues, which, along with earnings before interest, tax, depreciation and amortization (EBITDA), were less-than-stellar in 2015. Gross revenue dropped 4 percent to $4.3 billion, while EBITDA remained unchanged from 2014, at $331 million.
Agility’s smaller infrastructure unit outperformed its integrated logistics unit in terms of growth in revenue, though the unit represents only a quarter of the group’s business. On a constant currency basis, infrastructure revenue rose 4 percent to $1.04 billion, while logistics revenue reported a 2 percent drop to $3.30 billion.
In suit with Agility’s net profit, and contrary to gross revenues, Agility reported its net income rose 4 percent, to $1.34 billion for the year. According to a company statement, “the improvement resulted from continued growth in contract logistics and better performance within the freight forwarding business, particularly ocean freight. Air freight volumes softened towards the end of 2015, but ocean freight volumes and yields improved, driven by better commercial discipline.”
While admitting slower growth in emerging markets will continue to trend into 2016, due to Eurozone sluggishness, low oil prices and political instability, Agility’s CEO, Tarek Sultan, was still bullish on future growth prospects. “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. “I am confident in our strategy and our ability to meet our 2020 EBITDA target of $800 million.”Like This Post