KUWAIT-BASED logistics company Agility’s profits rose 11 per cent to KD11.24 million in the first quarter of this year, even though overall revenues dropped by 11 per cent.
Weak demand in air cargo continued to impact on the company’s Global Integrated Logistics (GIL) business, which saw its revenues decrease by 15 per cent to KD253.30m, over the same period in 2013.
The drop in revenue is attributable to several factors, including difficult market conditions that have led to rate deterioration despite volume increases, says a statement.
“But it was partially mitigated by better procurement in the freight business, which led to margin expansion from 21 per cent in first quarter in 2013 to 23 per cent in this quarter,” it adds.
Tarek Sultan, chief executive of Agility, notes that, overall, the company continues to improve its financial performance by focusing on growing its infrastructure portfolio of companies and simultaneously driving transformation of its core commercial logistics (GIL) business.
“The infrastructure companies started the year on a strong note, posting healthy revenue growth,” he says.
“Top line growth is challenged by market conditions that are affecting the industry overall.”