Aramex looking for more acquisitions after record first half
Express and logistics giant Aramex achieved record growth in the first half of the year, according to its latest results. The Jordan-based, Dubai-listed firm said revenues in the first six months of 2014 rose 7% compared to the same period last year, to AED 1.768bn.
Net profits in the period were up 13% year-on-year to AED 159.5m.
The company said a robust first quarter continued its strong momentum into the second, with Q2 revenues up 9% year-on-year, to AED 917m, and net profits up 12% to AED 80.8m.
Excluding the AED 5.642m impact from the acquisition of Australian same-day delivery firm Mail Call Couriers in June, the net profit growth for the first two quarters would have been 17% and 20% on the same periods in 2013.
Growth came across the global network, but with the Gulf Cooperation Council countries central to the performance.
Aramex said Europe, Asia-Pacific and African markets were showing stronger performances as economic conditions improved and volumes of international and domestic trade increased.
The firm said Africa remains central to its expansion strategy as it taps emerging market trade corridors.
International and domestic express services registered “significant” revenue growth — particularly international express, thanks to global interest in cross-border online shopping.
Aramex said its logistics services also recorded a particularly strong performance, driven by the retail, oil and gas industries. But, freight revenues were flat as the result of industry competition.
“Encouraging”
Hussein Hachem, the Aramex chief executive, said his company had delivered an “excellent” set of results.
“We are particularly pleased with the performance of our e-commerce business and how we continue to seize the considerable international opportunities in this sector,” he said.
“The performances of our operations in Europe, Asia-Pacific and Africa have also been encouraging, diversifying our revenue streams. Through the first half of the year, we have focused on building considerable scale in these growth markets by investing in our infrastructure, in addition to acquiring niche Australian express company Mail Call and signing an important Joint Venture with InPost, which will see the introduction of parcel lockers for the first time to the Middle East.”
Looking ahead, Hachem said he was confident of carrying the first half performance through to the second half of the year.
The company has its eye out for further acquisitions following the buying of Mail Call Couriers, which gives Aramex a delivery software platform it is looking to apply elsewhere in its business.
Hachem said: “We will look for other opportunities to invest in companies with suitable, scalable synergies, in line with our stated expansion plans, capitalising on our asset-light operating model and global alliance network. We will also invest in a number of initiatives to deepen our client services proposition, focusing on upgrading our logistics infrastructure.”
