Global logistics solutions provider Aramex (DFM: ARMX) today released its financial results for 2008.
For the year ending December 31, 2008, Aramex revenues grew from AED 1.784 billion to AED 2.080 billion, an increase of 17% compared to 2007. Net profits increased by 21% over the same period, from AED 121.5 million to AED 147.3 million.
Net profits for the fourth quarter of 2008 went up by 21% to AED 38.8 million, from AED 32.1 million for the same period in 2007, mainly driven by the significant improvement in margins of Aramex’s key products. Revenues for the period increased to AED 500.5 million compared to AED 495.0 million for the fourth quarter of 2007.
The growth in revenues in the fourth quarter was impacted by the lower number of working days due to an increase in the number of holidays in the Middle East and flat 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 a very healthy level, a result of a very serious effort to control the upward spiraling costs in the first 9 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 economic slow-down.
“We have a very healthy balance sheet with little debt, and we intend to keep it that way in 2009. Meaning: We will only embark upon new acquisitions if the value is very attractive in key strategic markets,” concluded Ghandour.
It is worth mentioning that Aramex has recently acquired the UAE’s Metrofile Middle East, which consolidates its position as the premier records management company in the UAE and the Mena region under Infofort.
