Middle East-based express and freight group Aramex announced today that it improved net profits by21% in 2008 despite a slowdown in the fourth quarter. The company will be cautious about any
acquisitions this year, however.For the year ending December 31, 2008, Aramex revenues grew by 17% to AED 2,080 million(€441.23 million). Net profits increased by 21% to AED 147.3 million (€31.25 million). In line withcompany policy, no forecasts for 2009 were issued.
In the fourth quarter of 2008, net profits went up by 21% to AED 38.8 million (€8.23million), mainly driven by the significant improvement in margins of Aramex’s key products.Revenues for the period increased to AED 500.5 million (€106.17 million) compared to AED 495.0million (€105.01 million) for the fourth quarter of 2007. Q4 revenue growth was impacted by thelower number of working days due to an increase in the number of holidays in the Middle East andflat to negative growth in revenues in European and North American markets.
“2008 was a good year; we were able to maintain our revenue growth and profit margins at avery healthy level, a result of a very serious effort to control the upward spiralling costs in thefirst nine months of the year,” commented Fadi Ghandour, founder and CEO of Aramex.
“Our fourth quarter revenues have slowed to a halt, a result of the global financial crisis,with December showing the most weakness, because of the holiday season and of the global economicslow-down,” he added.
On the topic of possible acquisitions, Ghandour commented: “We have a very healthy balancesheet with little debt, and we intend to keep it that way in 2009. Meaning: we will only embarkupon new acquisitions if the value is very attractive in key strategic markets.”
Aramex last month clarified a January 6 article in the Emirates Business 24/7 publicationabout potential acquisitions despite the uncertain economic environment. Although companyvaluations in certain markets had declined, Aramex said it would take a cautious approach to anyacquisition. The company could no longer confirm its ability to borrow up to $200 million to fundpotential acquisitions due to changed lending conditions.
