By Ivan Gale www.thenational.ae
Aramex, the global logistics and transport company, enjoyed a 10 per cent surge in profits during the second quarter of the year thanks to an increase in freight services in Europe and India.
Aramex, founded in Jordan, is among the largest logistics providers in the Gulf and took in profits of Dh55 million (US$14.9m), up from Dh50m from the same period last year. Revenues grew by 15 per cent to Dh557m.
“These solid figures meet our expectations,” said Fadi Ghandour, the chief executive of Aramex. “We remain focused on investing and expanding in emerging markets such as those in Africa, South East Asia and the CIS countries.”
Aramex had a net profit margin of 10 per cent in the quarter “as it continued to focus on operational cost efficiency”, it said. Its stock has gained 17 per cent this year compared with a 16 per cent drop in the Dubai Financial Market General Index.
Aramex was created in 1982 as an express delivery operator but grew into a multi-service provider including express delivery, freight forwarding, logistics and warehousing, consumer retail services and e-commerce solutions. It has branched out into the Gulf, Europe, Asia and the US. It employs about 8,100 people in 310 sites.
It is building a Dh120m, 43,000 square metre facility at Dubai Logistics City (DLC), the free zone adjacent to the new Al Maktoum International Airport in Jebel Ali. The DLC facility is due to be finished in the first quarter next year.
Aramex said yesterday it had won a contract to provide ground transport services across Europe as part of a two-year contract with the Dutch ministry of defence. Under the agreement, Aramex will handle the regular movement of shipments inbound and outbound from the Netherlands to sites across the EU, Norway, Switzerland and Turkey. The agreement could be extended to 2014.
The company has amassed Dh102m in net profits in the first half of the year.
One of its most high-profile jobs recently was when it shipped two lions and three hyenas from Amman, Jordan, to the Lionsrock Big Cat Sanctuary in South Africa.
* with Bloomberg