Agility Logistics records drop in revenues in third quarter

13 November 2016

Net revenues and profit hold up

Kuwait-headquartered Agility Logistics saw a 7 per cent decline in overall revenue in the third quarter of 2016, to reach KD312m ($1.03bn), compared with the same period the previous year.

Net profit, however, increased by 11 per cent during the same period to reach KD15.2m, the company said in a statement.

Net revenues also grew by 6 per cent to reach KD107.2m.

The decline in revenue is attributable mainly to a “sluggish economic trade growth in key regions and political uncertainty in others”, the statement said.

In contrast, Agility Logistics’ increased profitability is attributed to a sharper strategic focus and ongoing commitment to financial discipline, according to its CEO Tarek Sultan. The executive said his company will continue to invest in markets, products and technologies that will transform its business.

The firm’s logistics division accounted for nearly two-thirds of the business, with its third-quarter revenue falling by 8 per cent.

While contract logistics in emerging markets, along with ocean and air freight, are understood to have grown significantly during the quarter, the general slowdown in the company’s project logistics business as a result of the slowdown in the oil and gas market were blamed for the less-than-ideal performance of its logistics business.

The infrastructure group accounts for the rest of Agility Logistics’ business. It includes logistics-related services in emerging markets, including industrial real estate management, ground-handling and airport services, customs modernisation and remote infrastructure.

The firm’s fuel logistics subsidiary Tristar won a three-year, $165m contract to support the UN in the third quarter of the year. Agility Logistics’ subsidiary NAS has also won a 10-year concession to operate lounges in nine airports in Morocco.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.