Agility reported on Wednesday strong performance for the first quarter 2009 despite the slowdown affecting the global economy. Net profit before non-recurring items was KD39.2 million - or 39.15 fils per share - a gain of 16.4 percent over the same period a year ago. Operating profits before non-recurring items also increased by 12.8 percent compared to 1Q 2008. Tarek Sultan, chairman and managing director of Agility, said: “The growth in our operating profits (before non-recurring items) is a testament to our transformation; which has enabled us to expand our net revenue margin; and our ability to control operating expenses. Our strategy of diversified but complementary businesses has also been able to generate healthy results for our shareholders during this global recession as we have increased our cash from operations by 25 percent over the previous period.” First quarter net revenue margin increased to 37.9 percent from 34.1 percent compared to the same period last year, despite a decline in revenues by 8.1 percent reaching KD407.4 million. “With the net revenue margin expansion and the containment of operating expenses; we have been able to reach a strong operating profit (before non-recurring items) of KD43.7 million up 12.8 percent from KD38.7 million in 2008.” “We are closely monitoring our cash; selectively investing our capital; and rationalizing costs to ensure we emerge from this crisis as a stronger player globally. Going forward, we are proceeding with extreme caution, and will continue to center our efforts on aggressively managing cost and cash while driving performance. We also continue to scope out game changing opportunities for mergers and acquisitions.” The commercial logistics industry has been seriously affected by the financial crisis, seeing 20-30 percent drops in volumes on an average. The decline in volume has led to a 13.8 percent decrease in revenue for Agility's Global Integrated Logistics group, which posted first quarter revenue of KD244.8 million vs. KD283.9 million in the first quarter of 2008.
