Aramex posted a 12 per cent increase in first quarter net profit, beating analysts’ expectations, as the Dubai courier group grew its various businesses.
Net profit in the three months to March 31 rose to Dh96.9 million, up from Dh86.6m in the same period a year earlier, Aramex said. Revenue grew by 13 per cent to Dh1 billion, up from Dh930m. Net profit was affected by the one-off cost from last year’s acquisition of the New Zealand and Australia business of New Zealand’s Fastway Couriers for NZ$125.2m (Dh314.97m).
“Despite global economic uncertainty, continuing oil price volatility and currency fluctuations, our performance in Q1 was very strong,” said Hussein Hachem, the chief executive. “Net profit growth could have been even stronger, up by 18 per cent, had we not accounted for a one-time acquisition cost of Fastway Couriers during the quarter.”
Excluding the one-off cost, the results were in line with forecasts from the investment bank EFG Hermes.
The results beat forecasts of the Dubai investment bank Shuaa Capital and Egypt’s Naeem Brokerage.
“The results exceeded expectations, presumably, on the back of both organic and inorganic growth as the company continues to capitalise on e-commerce growth as seen by its latest acquisition of Fastway Couriers, which operates in one of the fastest-growing e-commerce regions,” said Hady Medhat, an analyst at Naeem Brokerage.
Shuaa is forecasting a full-year net profit of Dh372m, according to Asjad Yahya, Shuaa’s head of research, while Naeem Brokerage is projecting full-year net profit of Dh371m.
“Though we finished Q1 strongly, we experienced slower growth at the end of the quarter,” said Mr Hachem.
“We are closely watching this trend so we can quickly adjust to any volatility and we’re cautiously optimistic about continuing our growth momentum further into 2016.”
Aramex said it would continue with its acquisition spree to boost its e-commerce business, with a particular focus on Asia and Africa.
The logistics group is looking for up to three acquisitions this year to help to expand its footprint and grow its e-commerce business, Mr Hachem said in February.
Aramex’s share price closed up by 1.7 per cent, at Dh3.48, in Dubai on Sunday.
dalsaadi@thenational.ae
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