Aramex to make more acquisitions in Africa next year
Global express logistics firm Aramex is planning more acquisitions in Africa – and particularly in Southern Africa – next year. The company revealed its ambitions yesterday as it revealed an 11% boost to its profits in the third quarter of the year.
Aramex, which is listed on the Dubai stock exchange and has its global HQ in Amman, Jordan, made its first venture into the Southern Africa region last December with the acquisition of Berco Express.
It said yesterday that the company is now seeing “promising growth” after the completion of its integration into the global Aramex network, connected up to the company’s global trade hubs.
South Africa will now serve as the “springboard” for Aramex to expand in the Southern Africa region, the company said, confirming that it is expecting to announce new acquisitions in this area in 2013.
Overall, Aramex achieved a 17% year-on-year growth in its revenues in the third quarter of the year, partly thanks to its acquisitions, but also driven by good growth in e-commerce volumes and a sturdy performance within its core market area in the Middle East.
Revenues reached AED 763m for the quarter, while the company’s profits rose to AED 53.1m.
Fadi Ghandour, the Aramex founder and CEO, said: “We remain pleased with our financial performance for this quarter and for the whole year so far.
“One of our key growth drivers, e-commerce, continues to grow substantially, and our business in core markets remains robust, as the economies of the Gulf Cooperation Council countries continue to perform strongly and our South African operation is doing extremely well,” said Ghandour, who is to retire as CEO at the end of this year.
Developing markets
Aramex has been pursuing a growth strategy targeting emerging markets and developing countries in Asia and Africa.
Over the past few years it has made acquisitions and formed business alliances in Korea, Turkey, Malaysia, Bangladesh, Vietnam, Kenya and South Africa.
Ghandour said yesterday that the company’s Asian operations, including India, have been showing “promising” results, but suggested the current challenge was to build the newly-established operations in Africa.
