Aramex profit marginally up

Aramex, a logistics and transportation solutions provider, on Tuesday said its net profit in the first quarter rose five per cent to Dh49.8 million compared to Dh47.5 million on the back of strong performance in the GCC markets.

Revenues for the first quarter rose to Dh595 million up from Dh530 million in the corresponding period last year, an increase of 12 per cent.

“We are very pleased with our financials for the first quarter of this year, which were driven by strong performances in the Gulf Cooperation Council countries, where revenues have experienced a substantial increase since the beginning of 2011,” said Fadi Ghandour, Aramex founder and CEO.

“All our product offerings were in positive territory; I am especially encouraged by the double digit growth in our international express business, which is the biggest contributor to our operating income.”A company press statement said European operations and recent acquisitions in Africa and Asia also contributed to its performance.

“As we continue to expand our presence around the world, capturing growth opportunities in emerging markets in Africa and Southeast Asia, Aramex’s position here in the Middle East remains consistently strong,” said Ghandour, adding that Aramex witnessed challenging conditions in the first quarter of this year in MENA markets, such as Egypt and Bahrain, and the company has also voluntarily suspended its operations in Libya.

“Amidst regional political instability, higher fuel prices and global inflationary pressure, our outlook for the rest of this year remains cautious,” he said. “However, our healthy performance in the first quarter is a clear indicator that Aramex continues to successfully adapt to rapidly evolving market conditions.”

Ghandour added that Aramex remains committed to its long-term expansion strategy, with further acquisitions in East Africa and Central Asia.

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