Strong US dollar means acquisition opportunities, says Aramex
International express and logistics firm Aramex said today that the strong US dollar could push it towards acquisitions. The Jordan-based, Dubai-listed carrier issued its latest financial results this morning, showing profits up 10% year-on-year despite low oil prices and currency movements hitting performance.
Profits rose to AED 86.6m (USD $23.6m) in the first quarter, on revenues of AED 930m ($253.2m), which were up 9% compared to the same period last year.
Aramex said its international express business performed well, backed by its expanding e-commerce services in key growth markets.
Recent acquisitions in emerging markets like South Africa, and in the important e-commerce market Australia, have also driven growth in the company’s domestic express business, it said.
Commenting on the state of play at Aramex, its chief executive, Hussein Hachem, said: “While the volatility in global currencies impacted our revenues, a strong US dollar presents us with opportunities for acquisitions.”
“As such, we are confident about extending our growth momentum and performance into the remainder of 2015. Our traction is driven by innovation, investments in future growth and a company-wide focus on improved operational efficiencies through strategic investments in digital transformational technologies aimed at enhancing customer experience,” Hachem added.
e-commerce
Aramex said e-commerce will continue to drive its business expansion, with the company confident in its strategy of focusing on the Middle East, Asia and Africa.
It is investigating more acquisition opportunities regarding companies that add to its existing infrastructure, it said.
Aramex currently employs more than 13,900 people in 354 locations across 60 countries, expanding through acquisitions and partnerships since it started up in 1982. Its network currently includes 40 independent express companies.
Last year the firm turned over AED 3.65bn ($993.7m), with net profits of AED 318.4m ($86.7m).
Recent acquisitions have seen the company expanding in Africa and in Australia, with further partnerships forged to strengthen its position in Asia. Last year the company bought franchise shipping retailer PostNet South Africa and Australian same-day e-commerce delivery firm Mail Call Couriers.
