1.41 PM Friday, 19 April 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:32 05:49 12:21 15:48 18:47 20:04
19 April 2024

Aramex annual profit to rise 10% in 2015

Aramex said profits were driven by growth across all its geographies with the GCC remaining the largest contributor to revenues. (Supplied)


Aramex's profit will likely rise 10 per cent in 2015 and the Dubai courier is targeting two to three acquisitions this year, its chief executive said on Thursday after it reported an estimate-beating increase in fourth-quarter profit.

Hussein Hachem told a news conference his 2015 profit forecast for Aramex, which operates in 60 countries and leads an alliance of 40 independent couriers worldwide, would depend on the impact of oil prices and the euro.

Aramex's operating costs will fall 5-10 per cent in 2015 due to oil's slump and the company will cut its fees to customers accordingly, Hachem said.

Hachem said Aramex would seek to buy two to three companies that are a ‘strategic fit,’ but did not provide further details.

Earlier on Thursday, Aramex reported a profit of Dh89.4 million ($24.3 million) for the three months to December 31, up from Dh76.4 million in the prior-year period.

Three analysts polled by Reuters had on average forecast quarterly profit of Dh83.8 million.

Fourth-quarter revenue was Dh959 million, 13 per cent higher than a year earlier.

Aramex made a 2014 net profit of Dh318.4 million, up 15 per cent on its 2013 profit of Dh278 million.

"Our performance was driven by solid revenue growth primarily in international and domestic express, as well as the continued expansion of our e-commerce platform across key growth markets," Hachem said in a company statement.

Chief Financial Officer Bashar Obeid told reporters Aramex would sign a $150 million, five-year loan with local banks in next 10 days and would use the money to help fund expansion and acquisitions.

Aramex's shares were up 2.5 per cent at 0940 GMT, outperforming Dubai's stock index, which was up 0.7 per cent.