Aramex continues on expansion track
Aramex, the Jordan-based global logistics and transportation solutions provider, saw significant expansion in emerging markets in 2010.
The company strengthened its presence in Turkey, Malaysia, Bangladesh and Vietnam through a series of strategic acquisitions and partnerships. Fadi Ghandour, founder and CEO, said that Aramex will continue pursuing expansion opportunities in Southeast Asia this year, and he expects to announce acquisitions in East Africa during the first quarter.
Net profits for Aramex’s fourth quarter, ending December 31, 2010, increased 11 percent to Dhs55 million ($15 million) on revenues of Dhs580 million ($158 million), a 10 percent increase on the fourth quarter of 2009. Full-year net profits, at Dhs204 million ($55.5 million), were also 11 percent up on 2009. The company’s revenues increased 13 percent on the previous year to reach Dhs2.21 billion ($601 million).
The fourth-quarter result was “solid” and in line with growth rates during the previous quarters, Ghandour said. “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 Dhs555 million ($151 million) at year-end. Coupled with an extremely low debt-to-equity ratio, this would support the company’s strategic development plans, Ghandour 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.”
However, Ghandour warned of “more challenging conditions” over the coming year, thanks to sustained inflationary pressure and higher fuel prices.