Aramex posted a 10 per cent increase in net profits in the first quarter of this year due to growth across its geographies, the Dubai-listed delivery firm said.
Net profit rose to Dh86.6 million, up from Dh78.7m in a year-earlier period, the firm said in a statement. Revenues increased by 9 per cent to Dh930m in the first quarter of this year from Dh852m in a year-earlier period.
“Although we witnessed slower growth at the beginning of the quarter we finished Q1 strongly despite challenges brought about by low oil prices and weak global currencies,” said chief executive Hussein Hashem in the statement. “While the volatility in global currencies impacted our revenues, a strong US dollar presents us with opportunities for acquisitions. As such, we are confident about extending our growth momentum and performance into the remainder of 2015.”
Its international express business grew due to the continued expansion of the e-commerce platform across different growth markets. Its domestic express business also grew partly due to acquisitions in Australia and South Africa. E-commerce is also an integral part of the firm’s business expansion, the firm said in the statement.
The firm said it remains bullish on the Middle East, Asia and Africa and will continue to seek new acquisitions to grow its business.
Aramex expects profit this year to rise by at least 10 per cent and to make up to three acquisitions as the delivery firm grows its domestic and global operations, Mr Hashem said in February. The firm last year acquired PostNet South Africa for US$16.5m and Australia’s Mail Call Couriers for $26m.
Aramex has the appetite for bigger acquisitions and plans to borrow more this year than last year to help finance such takeovers, Mr Hashem said in February.
Aramex wants to expand in countries such as Nigeria, Kenya and South Africa, Mr Hashem said in February. It is currently present in 18 African markets and has nine target markets. It is expanding through acquisitions, joint ventures and franchise agreements.
It expects to generate more revenue from its non-Middle East operations as it grows in Africa and Asia. Currently revenue in the Middle East generates about 50 per cent of its total revenues, Mr Hashem said in February.
dalsaadi@thenational.ae
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