Aramex Q1 profit up 14% on Africa operations
By Massoud A. Derhally
Aramex, the largest courier company in the Middle East and North Africa, said on Wednesday that first quarter profits jumped 14 percent on the back of higher revenue from its operations Africa.
Net profit in the first three months of the year increased to AED69.4m from AED61m in the year earlier period, the company said in an e-mailed statement. Revenues increased 9 percent to AED810m compared with AED 745m in the same period in 2012.
“Our performance in the first quarter of 2013 was very much on target, with continued strong performance in key markets, resulting in healthy growth in revenues and net profits,” said Hussein Hachem, Aramex’s CEO.
“As expected, our operations in core markets, especially in the Gulf Cooperation Council (GCC) countries, continue to grow with healthy margins, and we were very satisfied with the increasing positive contribution of our operations in Africa to the company’s overall performance," Hachem added.
Sub-Saharan Africa is forecast to grow 6.1 percent in 2014, the International Monetary Fund (IMF) said in its World Economic Outlook report released this month. South Africa's economy, the largest economy in Africa, is set to grow 3.3 percent in 2014 from 2.8 percent.
The global economy is projected to expand 4 percent next year, up from 3.3 percent in 2013, according to the Washington-based organisation.
The company is pursuing its existing expansion strategy in growing markets through acquisitions and franchising, Hachem said.