Aramex PJSC : Dubai's Aramex eyes SA, East Africa

January, 13th 2014

DUBAI: Dubai-listed logistics group Aramex expects double-digit net profit and revenue growth for last year and is eyeing acquisitions in South Africa and east Africa later this year, its Fadi Ghandour, the group's founder and vice-chairman, said yesterday.

Nine-month net profit at |the firm rose 13 percent year on year, and full-year results should be in line with this, Ghandour, said.

Ghandour said that he was "relatively optimistic" about the firm's performance this year, with African expansion, the growth of internet shopping in the Middle East and its oil and gas business all expected to be key earnings drivers this year.

Africa would be Aramex's main focus for growth, he said, with expansion through a mixture of new operations, setting up licence agreements in some countries - which would be fully-fledged Aramex businesses, but owned by local partners - and acquisitions.

"Most interesting is going to be east Africa and South Africa. We've done one a couple of years ago in South Africa, and we'd like to do one more," Ghandour said, referring to Aramex's purchase of the logistics firm Berco Group in December 2011.

He did not expect to make any acquisitions before the third quarter of this year, and anything costing below $100 million (R1bn) Aramex could finance itself, he said. - Reuters

Source: 4-traders.com