Agility registered a net profit of KD13.5 million ($45.12 million) in the second quarter of this year, up 5 per cent compared with Q2 2014, the Kuwait-based logistics company said.

Earnings-per-share stood at 11.79 fils (there are 1,000 fils to a Kuwaiti dinar). Ebitda stood at KD25.5 million, a 1 per cent increase.

“The global logistics market is a mixed bag in terms of growth, with continued sluggishness in China and Europe, and ongoing pressure on rates. In this environment, we are pleased to report that Agility continues to post steady growth in profitability,” said Tarek Sultan, Agility’s chief executive.

“Agility’s Global Integrated Logistics (GIL) business continues to drive margin expansion through commercial transformation, financial discipline, and productivity improvements powered by technology.

Agility’s Infrastructure group of companies, which capture investment opportunities in niche logistics-related segments in emerging markets, each have their own strategy. Across the board, however, there is an emphasis on improving efficiency and growing potential through regional and customer expansion.” 

Revenue for GIL for the second quarter of 2015 was KD 259.0 million, a 4 per cent decrease from Q2 of 2014; GIL’s revenues were negatively impacted by currency volatility. Adjusted at constant currency rates, GIL revenues have decreased by 1 per cent compared with the same period last year. This slight revenue decline is a result of the general logistics market performance and also the planned end of some large contracts.

The freight forwarding market showed mixed performance in the second quarter relative to the beginning of the year, with a softer air freight market and consistent ocean freight market. The contract logistics market, especially in emerging economies, continues to grow however. This growth in contract logistics demand, coupled with improved yields in Agility’s air freight business, and better commercial disciplines, has resulted in margin expansion within GIL. Net revenue has increased by 1 per cent (adjusted at constant currency rates: +3 per cent), with margins expanding from 24 per cent in Q2 2014 to 25 per cent in Q2 2015.

 Agility’s Infrastructure companies contributed KD71.1 million to second quarter 2015 revenues.

“The infrastructure group will remain an important and growing contributor to the group’s profitability, with each entity pursuing its individual strategy to grow and expand. Most have a strong foundation in the Middle East, and are actively engaging with opportunities to grow in the region, Africa, and elsewhere,” said Sultan.