Aramex second quarter net profit rises 30 per cent
• Revenues drop 10 per cent to AED 485 million as freight activities continue to be impacted by global slowdown
• Net profit for first half of 2009 reaches AED 93.1million; first half revenues at AED 948.4 million
Aramex (DFM: ARMX), the global logistics solutions provider, today announced net profits of AED 50 million for the quarter ending June 30, 2009, compared to AED 38.4 million for the corresponding period in 2008, representing an increase of 30 per cent. Revenues for the second quarter of 2009 reached
AED 485 million, a 10 per cent drop from the AED 539.3 million registered during the same period in 2008.
The company continued to report an increase in net profits, amidst a challenging economic environment, reflecting the adaptability and resilience of its asset-light business model and its prudent cost management programmes.
The company’s net profits for the first half of 2009 stood at AED 93.1 million, a growth of 25 per cent over AED 74.6 million achieved in the first six months of 2008. Revenues for the first half of 2009 stood at AED 948.4 million, a drop of 8 per cent from AED 1,033.7 million registered in the same period in 2008. The decrease in revenues was primarily driven by a significant slowdown in global freight forwarding activity, which resulted in a drop of 22 per cent in freight revenues across the network.
Meanwhile, led by increased revenues of the company’s international and domestic express products, revenues in the Gulf Cooperation Council (GCC) region for the first six months of 2009 registered an increase of 6 per cent over the same period last year.
“While the global economic slowdown continued to affect our revenue growth in this period, we maintained focus on operational cost efficiency and customisation capabilities to better adapt to customers’ changing business needs,” said Fadi Ghandour, founder and CEO of Aramex. “This has enabled us to further improve our gross profit margins, control costs, and report an excellent net income growth.
“We continue to see, and benefit from, an accelerated trend among companies across the Gulf region towards outsourcing logistics services, driven by the need to restructure operational costs in the wake of current economic challenges.”
Ghandour added: “We see this as an ideal time for steady geographic expansion in key emerging countries, mainly in Africa and Central Asia, which we believe are underserved. We also remain committed to invest further in developing our logistics infrastructure across the GCC and the Levant. “
Aramex’s commitment to enriching its service offering to customers is evident in the recently launched Value Express service, which was developed to support the commercial sector in achieving greater cost efficiencies amidst current economic conditions.
