Business

Aramex sticks with growth target as courier lines up acquisition this year

The company made a net profit of Dh74.6 million in the three months to September 30.

Dania Saadi

October 28, 2015

Aramex is planning another acquisition before the end of the year as it maintains its full-year growth targets

The Dubai-listed courier company is forecasting a 10 per cent increase in full-year net profit, despite positing a worse-than-expected 7.3 per cent rise in third-quarter profit, the chief executive of the Dubai-based courier said yesterday.

Aramex’s net profit in the three months to September 30 rose to Dh74.6 million compared with Dh69.5m a year earlier. Revenue grew 2 per cent to Dh937.5m from a year ago .

Profit could have increased by 10.5 per cent and revenue by 6 per cent without the impact of currency fluctuations and lower oil prices, Hussein Hachem said.

Growth in the third quarter was driven by an increase in on-line shopping, which provides the company with high margins.

Third-quarter net profit missed expectations mainly owing to lower oil prices and currency fluctuations, according to Egypt’s Naeem Holding.

“Overall, the results are weak, missing our estimate predominantly on the back of lower growth (hurt by FX exposures and oil price fluctuations) and in addition, operating leverage factors (a fixed-cost base, growing faster than sales),” Naeem said in a report.

“Nevertheless, Aramex continues to post absolute growth across all of its markets and business segments, with e-commerce consistently being the best performing segment .”

Naeem, which has a buy rating for Aramex, said the outlook for the company remains positive because of its e-commerce business and strategy to diversify services through expansion.

Aramex is planning to finalise at least one acquisition in Asia this year to help its e-commerce business to grow.

Mr Hachem said it was in the final stages of announcing “at least one or two” acquisitions servicing demand from predominantly e-commerce clients.

In May, Aramex agreed to buy a 25 per cent stake in WS One Investments for Dh9 million. Dubai-based WS operates out of Ohio in the US and provides cross-border mailbox consolidation.

Aramex last year acquired PostNet South Africa for $16.5m and Australia’s Mail Call Couriers for $26m.

Aramex is still weighing up entry into a partnership with Egypt’s Orascom Telecom Media and Technology (OTMT) to set up logistics areas in the North African country, said Mr Hachem. Aramex said last month its board had delayed making a decision.

dalsaadi@thenational.ae

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Pupils in Abu Dhabi are learning the importance of being active, eating well and leading a healthy lifestyle now and throughout adulthood, thanks to a newly launched programme 'Healthy Lifestyle'.

As part of the Healthy Lifestyle programme, specially trained coaches from City Football Schools, along with Healthpoint physicians have visited schools throughout Abu Dhabi to give fun and interactive lessons on working out regularly, making the right food choices, getting enough sleep and staying hydrated, just like their favourite footballers.

Organised by Manchester City FC and Healthpoint, Manchester City FC’s regional healthcare partner and part of Mubadala’s healthcare network, the ‘Healthy Lifestyle’ programme will visit 15 schools, meeting around 1,000 youngsters over the next five months.

Designed to give pupils all the information they need to improve their diet and fitness habits at home, at school and as they grow up, coaches from City Football Schools will work alongside teachers to lead the youngsters through a series of fun, creative and educational classes as well as activities, including playing football and other games.

Dr Mai Ahmed Al Jaber, head of public health at Healthpoint, said: “The programme has different aspects - diet, exercise, sleep and mental well-being. By having a focus on each of those and delivering information in a way that children can absorb easily it can help to address childhood obesity."