Dubai's Aramex eyes H2 acquisitions after Q2 profit boost

Logistics giant says it is looking to buy companies with similar profiles to its own in second half of 2015
Dubai's Aramex eyes H2 acquisitions after Q2 profit boost
By Reuters
Thu 30 Jul 2015 01:41 PM

Dubai-based courier Aramex is looking to make acquisitions in the second half of the year, it said on Wednesday, after growth in online shopping boosted its second-quarter net profit.

Aramex is looking to buy companies with similar profiles to its own, the firm said in a bourse filing.

Banks in the United Arab Emirates have already extended a line of credit for the acquisitions, Aramex said, without elaborating on which companies it was looking at or how much it might spend. The firm acquired Australia's MailCall in 2014.

Aramex reported a 15 percent rise in second-quarter net profit to 92.6 million dirham ($25.2 million). That was slightly ahead of estimates from two analysts.

Second-quarter revenue rose 6 percent year-on-year to 967 million dirhams, it said.

Aramex chief executive Hussein Hachem said revenue growth would have reached 10 percent if not for weak global currencies.

"The impact of global oil prices and weak major currencies continue to be areas we will carefully monitor moving forward," Hachem said.

The drop in oil prices and currency fluctuations hit growth in the company's freight business particularly.

The courier said it saw significant revenue growth from international and domestic business, helped by a continued increase in demand for global online shopping services, especially in the Gulf countries, Europe and North America.

Logistics also recorded a strong performance driven mostly by growth in core Gulf Cooperation Council countries and South Africa, the company said.

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