Middle East-based express and freight transport group Aramex is eyeing more acquisitions inregions such as Asia and Africa after achieving double-digit revenue and profit growth both in the
fourth quarter of 2012 and for the full year.The company announced yesterday that its revenues increased by 21% to AED 3.1 billion (€623million) last year, driven by double-digit express growth, while its net profits improved by 15% toAED 244 million (€49 million). In the October – December fourth quarter, its revenues increased by20% to AED 814 million (€163 million) and its net profits were 15% higher at AED 66 million (€13million).
The 2012 results were a clear improvement on the 2011 figures which were heavily impacted by therevolutions in Egypt and Tunisia and unrest in other parts of the Middle East.
Hussein Hachem, Aramex’s Chief Executive Officer, said: “We are very happy with our financialresults for this quarter and for the overall performance of the company in 2012, which clearlydemonstrates continued solid performance in key markets with strong growth in revenues and netprofits, in line with our expectations. Our operations in core markets, especially in the GulfCooperation Council (GCC) countries and South East Asia, remain robust while our operations inAfrica continue to show promising growth, in particular after the acquisition of Berco Express inSouth Africa in December 2011.”
Aramex said that in 2012 it invested “significantly” in enhancing last mile solutions, withsignificant upgrades to the existing logistics infrastructure in key markets and the launch of anumber of new logistics facilities, to serve the growing e-commerce industry.
The network investment reflected directly on the company’s International and Domestic expressproducts which recorded double-digit growth in both revenues and volume. These services areexpected to grow even more in light of the tremendous opportunities in the years ahead and due tothe company’s position as a leading provider of e-business solutions connecting suppliers and endcustomers.
The significant infrastructure upgrade also reflected positively on the company’s operationsin the Oil and Gas sector, which recorded healthy growth with an increasing contribution to theoverall performance, following the introduction of new service solutions in the Gulf CooperationCouncil (GCC) and the Levant regions in 2011.
Commenting on the outlook for 2013, Hachem, who took over from company founder Fadi Ghandourat the end of last year, stressed that while he is confident of the company’s potential for growth,a cautious outlook for 2013 needs to be maintained due to the continued instability in the MiddleEast & North Africa, and the uncertainties clouding the global economic outlook.
Looking at longer-term prospects, Hachem said: “Looking beyond this year, we believe thatAramex’s future growth will be shaped by our focused approach on capitalising on two key globaltrends. First is the increasing significance of B2C activity driven by the evolution of thee-commerce industry and the untapped potential for e-business in emerging markets. The second trendis linking emerging markets in Asia with the Middle East and Sub-Saharan Africa; considering theincreasing significance of south-south trade, which accounts for a substantial percentage of globaltrade.”
The new CEO added that “we will continue our strategic expansion plans in key growth marketswhich currently provide excellent opportunities for sustainable growth, and we will be looking atopportunities for acquisitions and joint ventures in our key target regions of Africa, Central Asiaand Asia.”
Aramex expanded internationally in 2010 with small acquisitions and partnerships in Turkey,Bangladesh, Malaysia and Vietnam. In 2011 it grew in Africa with the acquisitions of OneWorldCourier and In-Time Couriers in Kenya, and Berco Express in South Africa. It also set up a jointventure in China with express and freight company SinoAir. In early 2012 the company sealed aregional cooperation deal with expanding Korean express and logistics company CJ GLS.
Moreover, Aramex is a founding member of and chairs the Global Distribution Alliance (GDA),which brings together over 40 regional express and logistics providers from around the world. TheGDA network has more than 12,000 offices, 33,000 vehicles and 66,000 employees in more than 240countries.
