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Aramex 2009 fourth quarter net profits rise 28% while full year profits go up 25%

2010-01-31

Aramex (DFM:ARMX), the global logistics and transportation solutions provider, today announced its financial results for the fourth quarter of 2009 and consolidated results for the 12-month period ending December 31, 2009. Net profits for the fourth quarter of 2009 surged to AED 49.5 million, from AED 38.8 million, a 28% growth from the corresponding period in 2008. On the revenue side, Aramex was able to weather the financial crisis and emerge at the end of the fourth quarter in a healthy position. Revenues for the fourth quarter of 2009 reached AED 524.8 million, a 5% increase over the AED 500.5 million in revenues posted for the same period in 2008. The fourth quarter was the first quarter in 2009 with positive revenue growth, marking a bottoming out of the preceding revenue decline. Aramex continues to maintain a very healthy balance sheet with a cash balance of AED 502 million as of December 31, 2009, coupled with an extremely low debt-to-equity ratio of 1.4%. Aramex’s strong cash position is ideally placed to support the company’s development and expansion plans for 2010.  Aramex’s fourth quarter results concluded a year marked with impressive performance despite the volatile economic conditions. Even though revenues in 2009 dropped by 6% to AED 1,961 million, compared to AED 2,080 million for 2008, the year still witnessed a 25% growth in net profits to AED 184.3 million, compared to AED 147.3 million for 2008. This growth was driven by a substantial improvement in net profit margins, which surged from 7.1% in 2008 to 9.4% in 2009, reflecting the adaptability of Aramex’s asset-light business model and its ability to quickly implement cost-control programs. “Throughout 2009, we were consistent in delivering solid performance while maintaining our employee base and without the need to restructure,” Fadi Ghandour, founder and CEO of Aramex remarked. “Our performance is a testament to the entrepreneurial spirit and hard work of our people who went out there as a team to reinforce Aramex’s position in the market, negotiate favorable deals with suppliers, innovate new solutions, and create lasting partnerships with our customers.” Ghandour added: “In 2010, we will continue to broaden our investments and expansion in emerging markets such as those in Africa, Southeast Asia and CIS countries by partnering with strategic local companies, as we did recently in Sri Lanka and Oman. We will also remain focused on strengthening our capabilities in third party logistics services to meet the increasing demand as outsourcing trends continue in our core markets.” Along with improving its financial and operational performance, Aramex will continue to pursue initiatives that fulfill its sustainability Commitments in 2010. These include adopting environmentally-friendly practices in its operations, actively engaging in community development and partnering with institutions to foster an entrepreneurial environment in which youth and SMEs can thrive. “As a major logistics player in the region, we have a strategic interest in being a facilitator of trade and business, including E-Commerce, especially among SMEs and startups. Leveraging the growth of entrepreneurial entities is intertwined with Aramex’s success,” Ghandour concluded.