Aramex profits up 11%
Aramex has announced a net profit growth of 11% for its fourth quarter of 2010. The company’s net profits for the Q4 2010 rose to AED 55m ($15m), up from AED 49.5m ($13.47m) in the corresponding period of 2009, representing an increase of 11%.
For the period, Aramex’s revenues rose to AED 580m ($158m), up 10% compared to AED 525m ($143m) in the Q4 2009.
Aramex founder and CEO Fadi Ghandour said he was pleased with the Q4 results, as the company also released its consolidated financial results for the 12-month period ending December 31, 2010.
“We are pleased with our solid financial results for the fourth quarter, which fully meets our expectations and are in line with growth rates during the previous quarters,” said Ghandour. “During the period, we recorded high net income margins, an increased operating profit and revenue growth in key services across all the markets we serve.”
Aramex reported a cash balance of AED 555m ($151m) as of December 31, 2010, maintaining its “very healthy” balance sheet. This strong cash position, coupled with an extremely low debt-to-equity ratio, will support the company’s strategic development plans, it was confirmed.
2010 was a year of significant expansion for Aramex, which strengthened its presence in emerging markets such as Turkey, Malaysia, Bangladesh and Vietnam through a series of strategic acquisitions and partnerships.
Ghandour said that the company will continue to execute its long-term growth strategy in 2011, focusing on expansion opportunities in key markets in Africa and south-east Asia, including anticipated acquisitions in east Africa in the first quarter of this year.
He added: “While we continue to identify expansion opportunities in emerging markets, it is worth highlighting the company’s strong performance in developed markets such as Europe, which provided a notably positive contribution to our bottom line.”
For the 12 months ending December 31, 2010, Aramex reported full-year net profits of AED 204m, an increase of 11% compared to AED 184.3m ($50.2m) in 2009. During the same period, the company’s revenues reached AED 2.21bn ($602m) , up 13% compared to AED 1.96bn ($533m) in the previous year.
“Aramex continues to deliver on its promises – to its customers, employees and shareholders – and we have reached the goals we set for the company for the period,” said Ghandour.
Noting the company’s anticipated increased operating costs in 2011, led by sustained inflationary pressure and higher fuel prices, Ghandour said he expects to see more challenging conditions over the next year: “While the global economy has now moved out of recession our outlook for 2011 is cautious, although we will reserve judgement for the full year until after we have posted our results for the first two quarters.
“Despite these more challenging conditions, however, we have a clear vision for the company in 2011. We will continue to focus carrying out our long-term growth strategy, and meeting the operational milestones we have set for Aramex in the year to come.”
Ghandour additionally noted that, for the first time, the annual Aramex Sustainability Report, which evaluates the company’s progress on economic, social and environmental commitments, will be integrated into its upcoming 2010 Annual Report.
“As the first company in the Middle East region to provide integrated financial and sustainability reporting, Aramex continues to highlight the inseparable role of sustainability in our operations, performance and overall strategic direction,” he said.
Finally, Ghandour highlighted that Aramex continues to monitor closely the situation in Egypt, where the company’s operations have been interrupted temporarily but are ready to resume as and when possible. “Our employees, who are our highest priority, remain safe, and our facilities have not suffered any damage,” he said. “In the short term, we do not anticipate that the current unrest will have a significant impact on our revenues.”
