By Andy Sambidge
Logistics provider announces drop in revenues due to slowdown in global freight activity.
Aramex, the global logistics solutions provider, on Wednesday announced net profits of AED50 million ($13.6m) for the second quarter, an increase of 30 per cent.
Revenues for the second quarter of 2009 reached AED485 million, a 10 percent drop from the AED539.3 million registered during the same period in 2008.
The company’s net profits for the first half of 2009 stood at AED93.1 million, a growth of 25 percent over AED74.6 million achieved in the first six months of 2008.
Revenues for the first half of 2009 stood at AED948.4 million, a drop of 8 per cent. The decrease in revenues was primarily driven by a significant slowdown in global freight forwarding activity, which resulted in a drop of 22 percent in freight revenues across the network.
“While the global economic slowdown continued to affect our revenue growth in this period, we maintained focus on operational cost efficiency and customisation capabilities to better adapt to customers’ changing business needs,” said Fadi Ghandour, founder and CEO of Aramex.
“This has enabled us to further improve our gross profit margins, control costs, and report an excellent net income growth.
“We continue to see, and benefit from, an accelerated trend among companies across the Gulf region towards outsourcing logistics services, driven by the need to restructure operational costs in the wake of current economic challenges.”
Ghandour added: “We see this as an ideal time for steady geographic expansion in key emerging countries, mainly in Africa and Central Asia, which we believe are underserved. We also remain committed to invest further in developing our logistics infrastructure across the GCC and the Levant."
Hello all , Tahnk you for following up on Aramex news. I would like to draw your attention to the picture attached. Aramex has rebranded it logo and sologan , please onform us if you needed pictures and the logo for next article . your cooperation is highly appreaciated. Thanks, Reem Shwiehat