Aramex net profits up 10% in second quarter

DFM-listed logistics major Aramex has reported a 10 per cent increase in its net profits for the second quarter of 2010, to Dh55 million from Dh50m in the same period of 2009.

Net profit growth for the first half of 2010 also registered a 10 per cent growth - to Dh102m this year from Dh93m in H1 2009.

In an e-mailed statement sent to Emirates 24|7, the company said its revenues witnessed double-digit growth for the second consecutive quarter, reaching Dh557m in Q2 2010, a rise of 15 per cent from the Dh485m registered in the same period of 2009.

The company attributed the growth to an increase of business across its operations and strong growth in freight services in Europe and India.

Analysts at Shuaa Capital said in a note: “Reported figures are very solid, the company continues to deliver firm growth and continues to meet or exceed market expectations.”

The company achieved a net profit margin of 10 per cent in Q2 as it continued to focus on operational cost efficiency.

“These solid figures meet our expectations for this quarter, and are very much in line with historically strong performances across all levels of operations,” said Fadi Ghandour, Aramex founder and CEO.

“Supported by our strong cash position, we remain focused on investing and expanding in emerging markets such as those in Africa, Southeast Asia and the CIS countries,” he added.