Aramex targets Dh550 million in acquisitions after profit rise

Dubai-based courier Aramex  has several acquisitions in the pipeline and is expecting to close deals valued in the range of $150 million (Dh550.5 million) in the next two quarters, its chief executive told Reuters.

Hussein Hachem's emailed comments on Wednesday came after the company reported a 7 per cent rise in third-quarter net profit, boosted by revenue growth across its markets, led by the Gulf Cooperation Council.

But the company is increasingly looking further afield to raise its market share in the competitive logistics and transportation sector.

"These acquisitions will help us increase our presence in growth markets," Hachem said, declining to specify the locations of the target companies.

It bought South African logistics and transportation company Berco Express in 2011 and Australian domestic courier company Mail Call Couriers last year.

Aramex had secured a $150 million credit line from a consortium of banks and could easily increase that amount if needed, said Hachem.

It earlier reported net profit of Dh74.6 million ($20.3 million) in the three months to Sept. 30, compared with Dh69.5 million a year earlier. Two analysts had forecast a range of Dh79.7-88.5 million.

"Revenue growth in Q3 was stable for the business, despite fluctuating oil prices and weaker global currencies. While this volatility did impact our revenues this quarter, net profit growth was still overall positive," Hachem said in the earnings statement.

Aramex's revenue rose 2 per cent to Dh937 million. The GCC was the largest contributor, despite fewer working days due to public holidays.