Aramex looking at additional acquisitions

The Abu Dhabi-based express carrier, having already completed two deals in January, 2016, says it has plans for further expansion.    The Dubai-based express and logistics company Aramex plans to make additional acquisitions in the coming year, the company said in a statement.
   The National, a newspaper based in Abu Dhabi, and the news service Reuters have reported acquisition targets might include firms in the United States, Asia and Africa.
   “We will continue to look for future acquisitions in our key markets while exploring more ways to enhance our e-commerce platform through improved transit times due to the continued boom in cross-border e-commerce,” said Hussein Hachem, the company’s chief executive company.
   “I am delighted to say that 2015’s fiscal performance prepared us well to execute our 2016 plans. 2015 was an important year for us to lay the groundwork for launching major initiatives which we are going to activate in 2016. While we continue to closely monitor global oil prices and currencies, we feel optimistic towards the outlook of 2016. We have already had a very exciting start by announcing the full buyout of Fastway Couriers’ operations in New Zealand and Australia. This was our biggest acquisition to date and will play a major role in expanding our reach and services to more customers worldwide,” he said.
   On Jan.  21, Aramex announced a 100 percent buyout of Fastway’s business in New Zealand and Australia for 293.65 million Emirati Dirham (U.S. $80 million).
   Aramex also acquired last month a 25 percent stake in Ohio-based WS One General Trading LLC (WS1) for AED 9 million (U.S. $2.45 million).
   “WS1 consolidates and ships packages to customers around the world,” Aramex said of the purchase. “The company provides its global customer base with WS1 addresses to enable the purchase of online goods with economical delivery options. Once packages are received in the US, WS1 through its professionally managed warehouse ships them to over 20 different countries. This ensures the most efficient, cost-effective and secure shipping options for its customers, 40% of which already use Aramex.”
   Hachem said, “We will continue to look for future acquisitions in our key markets while exploring more ways to enhance our e-commerce platform through improved transit times due to the continued boom in cross-border e-commerce. We will soon be launching our new innovative app that will give the power to customers through higher visibility, payment flexibility, more locations delivery options and a rating system. We will also be unveiling soon a new Rapid Scaling Up model based on partnerships in cities around the world giving us access to delivery partners thanks to our innovation and technology.”
   Aramex also reported its 2015 results Wednesday, posting a net profit of AED 311 million, down 2 percent from AED 318 million in 2014. 2015 revenues stood at AED 3.8 billion, up 5 percent from AED 3.6 billion in 2014.
   In the fourth quarter, profits fell 36 percent year-over-year to AED 57.6 million. Revenues, on the other hand, grew 5 percent from the fourth quarter of 2014 to AED 1 billion.
   The company attributed the fourth quarter decrease in profit primarily to “a one time provision to account for an employees’ incentive scheme in order to retain and reward talented and senior executives, in-line with international best practices.” Otherwise, Aramex net profit would have been up 16 percent for the quarter, the company said.