Aramex Q1 net profit rises 22pc
Dubai, April 24, 2012
Aramex, the Dubai-based logistics firm, posted a 22 percent rise in first-quarter net profit on Tuesday, driven by higher revenues from the Gulf and contribution from its recent South African acquisition.
Aramex, a favourite of regional fund managers, made a first-quarter net profit of 61 million dirhams ($16.6 million), compared with 50 million dirhams for the same period last year.
Revenues rose 25 percent to 746 million dirhams, Aramex said in a bourse filing.
'These results were mainly due to the robust economic growth in the Gulf Cooperation Council (GCC) countries, and the significant contribution of our recent acquisitions in 2011, in particular Berco Express in South Africa,' said Fadi Ghandour, founder and chief executive officer.
Aramex had in December last year paid $55.5 million for the acquisition of South African logistics firm Berco Express.
The company said it remains focused on its strategy of expanding into emerging growth markets in Africa, South East Asia and Central Asia.
Ghandour is to step down by the end of 2012 and hand over day to day operations to Hussein Hachem, the current head of the Middle East and Africa regions, the company said last week.
The company also signed a partnership agreement in March with South Korea's CJ GLS, an unlisted unit of CJ Cheiljedang , a food-to-entertainment conglomerate. The deal will enable Aramex to provide express and freight services to South Korea and follows the firm's launch of a joint venture in China with Sinotrans Air Transportation in November. - Reuters