Middle Eastern express giant Aramex has published eye-opening first-quarter results that reveal the operator saw a 19% increase in net profit over the same period last year, despite the international downturn that has beset the market since the last third of 2008.
One of the major reasons for the company’s success has been its slightly lower exposure to international markets, where competitors such as FedEx, DHL and UPS have suffered withering figures in the first quarter. Although Aramex’s freight revenue fell by 20% in the first quarter, which the firm attributed to the slowdown in the US and European markets, the Middle East sector has remained exceptionally resilient by comparison.
Of particular interest is the fact that Aramex’s international express division actually saw growth – of 4% – which the company said was as a result of its strong performance in e-commerce and relatively stable prices in core markets.
Aramex indicated that it had reduced costs by negotiating better rates with major suppliers, and that it maintained a strong financial position, with very low debt.
“The past two quarters, which have witnessed a global financial meltdown, a very serious slump in worldwide trade, and very low levels of consumer confidence, have tested our ability to deliver the results expected of us by our stakeholders,” said Fadi Ghandour, founder and CEO of Aramex.
“During this period, we needed to stabilise the business while continuing to deliver the same high-standard services to our clients. At the same time, we needed to reassure our own employees, and to let the market know that our asset-light business model is at its best when it is tested – as in these turbulent times,” Ghandour added.