Middle East-based Aramex today announced an 11% rise in Q4 profits but warned of more cautiousexpectations this year. Its Egypt operations have been suspended due to the country’s political
turbulence.The company’s net profits for the fourth quarter of 2010, ending December 31, rose by 11% to AED55 million (€11 million) while its revenues went up 10% to AED 580 million (€116 million). For 2010as a whole, net profits improved 11% to AED 204 million (€40.8 million) on revenues up 13% at AED2.2 billion (€442.4 million).
“We are pleased with our solid financial results for the fourth quarter, which fully meets ourexpectations and are in line with growth rates during the previous quarters,” said Fadi Ghandour,Aramex founder and CEO. “During the period, we recorded high net income margins, an increasedoperating profit and revenue growth in key services across all the markets we serve.”
Aramex reported a cash balance of AED 555 million as of December 31, 2010, maintaining its veryhealthy balance sheet. This strong cash position, coupled with an extremely low debt-to-equityratio, will support the company’s strategic development plans.
Referring to Egypt, Ghandour said the company’s operations have been interrupted temporarily butthe company was monitoring the situation closely and was ready to resume business as and whenpossible. “Our employees, who are our highest priority, remain safe, and our facilities have notsuffered any damage,” he commented. “In the short term, we do not anticipate that the currentunrest will have a significant impact on our revenues.”
2010 was a year of significant expansion for Aramex, which strengthened its presence in emergingmarkets such as Turkey, Malaysia, Bangladesh and Vietnam through a series of strategic acquisitionsand partnerships. Ghandour said that the company will continue to execute its long-term growthstrategy in 2011, focusing on expansion opportunities in key markets in Africa and Southeast Asia,including anticipated acquisitions in East Africa in the first quarter of this year.
“While we continue to identify expansion opportunities in emerging markets, it is worthhighlighting the company’s strong performance in developed markets such as Europe, which provided anotably positive contribution to our bottom line,” he added. “Aramex continues to deliver on itspromises – to its customers, employees and shareholders – and we have reached the goals we set forthe company for the period.”
Noting the company’s anticipated increased operating costs in 2011, led by sustainedinflationary pressure and higher fuel prices, Ghandour said he expects to see more challengingconditions over the next year. “While the global economy has now moved out of recession, ouroutlook for 2011 is cautious, although we will reserve judgement for the full year until after wehave posted our results for the first two quarters.”
“Despite these more challenging conditions, however, we have a clear vision for the company in2011,” he said. “We will continue to focus carrying out our long-term growth strategy, and meetingthe operational milestones we have set for Aramex in the year to come.”
