Aramex profits up 14% in second quarter
Global express logistics company Aramex achieved healthy growth during its second quarter of the year, according to its latest financial results. Revenues were up 21% in the quarter compared to the same period last year, to AED 782m, while net profits increased 14% to AED 56.5m.
While not quite as rosy as the first quarter, the performance meant that for the first half of 2012, revenues were up 23% compared to the beginning of 2011, to AED 1.528bn, while net profits rose 18% to AED 125m.
Fadi Ghandour, the Aramex founder and CEO, described the results as “strong” considering the slowdown in the global economy.
“This is attributed to the very strong performance in the Gulf Cooperation Council countries, whose economies continue to grow,” he said.
As well as its presence in the Middle East, Aramex has been benefiting from its recent acquisitions in Africa in the form of Kenyan firms OneWorld Courier and In-Time Couriers, and South African company Berco Express.
The company said its operations in Egypt had been improving gradually since the start of this year, although its outlook remains unclear considering the continuing vulnerability for the country to political conditions following June’s presidential elections, when Aramex said it witnessed a significant slowdown in business.
Ghandour, who is due to retire by the end of 2012, said his company was continuing its strategy of expanding through acquisitions and startups in Africa, South-East Asia and Central Asia.
“While our strategic acquisitions in 2011 are bearing fruit with an increasing contribution to our global revenue, initial investments in our greenfield operations in Africa continue to weigh down on our immediate quarterly results and are expected to start contributing positively to our revenues by 2013. With that in mind, I am confident of our direction and performance for the rest of the year,” said the Aramex CEO.
