Middle East instability hits profits at acquisition-hungry Aramex
Dubai-based express delivery and logistics firm Aramex has reported health growth in its revenues and profits for the third quarter of the year, despite continuing instability in the Middle East and North Africa. The company reported today that revenues have increased 19% compared to the same period in 2010, to AED 651m ($177m USD) for the quarter.
Net profits rose 3% to AED 48m ($13m USD), facing pressure from high fuel prices that translated into increased operating costs and overheads.
Growth was seen across all product lines in key markets, Aramex said, including the Gulf Cooperation Council countries and particularly in Saudi Arabia and the UAE.
The instability in Egypt and the Eastern Mediterranean area did have an affect on the company’s results, according to Aramex founder and CEO Fadi Ghandour, making it more expensive to do business in the region.
“Our operations are experiencing a slowdown due to uncertainties in Egypt and other markets, which has affected business and trade across the whole region,” he said.
“Considering the volatile political situation in a number of our markets in the Middle East, I am satisfied with the financial results, which were in line with our expectations for this difficult year.”
Aramex is due to launch a number of new operations in Africa, Ghandour revealed, including new offices and infrastructure, which has also added to the cost burden on the company’s results.
Details of the expansion are to be announced soon, the Aramex CEO added.
The company is also in the process of working on a number of strategic acquisitions in key emerging markets in Central Asia and Africa, with expectation that announcements will be made in early 2012.
