Aramex (ARMX) press release (in next post) just announced 2009 Q4 profits of AED 49.5 million, an increase of 28% from AED 38.8 million in 2008 fourth quarter.
Aramex 2009 FY profit of AED 184.3 million is up 25% from 2008 FY profit of AED 147.3 million for 2008.
No information about dividends.
Financial statements not supplied (check DFM website tomorrow morning - they might be posted, unless it's just the press release for now). _________________ UAE IPO list | posting guidelines
Aramex 2009 fourth quarter net profits rise 28% while full year profits go up 25%
Aramex emerges from fourth quarter with healthy revenues
Full year profit growth driven by improvement in net profit margins
Company maintains strong cash position of AED 502 million as of December 31,2009, coupled with very low debt
Dubai: Aramex (ARMX), the global logistics and transportation solutions provider, today announced its financial results for the fourth quarter of 2009, and consolidated results for the 12-month period ending December 31, 2009.
Net profits for the fourth quarter of 2009 surged to AED 49.5 million, from AED 38.8 million, a 28% growth from the corresponding period in 2008.
On the revenue side, Aramex was able to weather the financial crisis and emerge at the end of the fourth quarter in a healthy position. Revenues for the fourth quarter of 2009 reached AED 524.8 million, a 5% increase over AED 500.5 million in revenues posted for the same period in 2008.
The fourth quarter was the first quarter in 2009 to witness positive revenue growth, marking a bottoming out of the preceding revenue decline.
Aramex continues to maintain a very healthy balance sheet with a cash balance of AED 502 million as of December 31, 2009, coupled with an extremely low debt-to-equity ratio of 1.4%. Aramex’s strong cash position is ideally placed to support the company’s development and expansion plans for 2010.
Aramex’s fourth quarter results concluded a year marked with impressive performance despite the volatile economic conditions. Even though full year revenues for 2009 dropped by 6% to AED 1,961 million, compared to AED 2,080 million for 2008, the year still witnessed a 25% growth in net profits to reach AED 184.3 million, compared to AED 147.3 million for 2008. This growth was driven by a substantial improvement in net profit margins, which surged from 7.1% in 2008 to 9.4% in 2009, reflecting the adaptability of Aramex’s asset-light business model and its ability to quickly implement cost-control programs.
“Throughout 2009, we were consistent in delivering solid performance while maintaining our employee base and without the need to restructure,” Fadi Ghandour, founder and CEO of Aramex remarked. “Our performance is a testament to the entrepreneurial spirit and hard work of our people who went out there as a team to reinforce Aramex’s position in the market, negotiate favorable deals with suppliers, innovate new solutions, and create lasting partnerships with our customers.”
Ghandour added: “In 2010, we will continue to broaden our investments and expansion in emerging markets such as those in Africa, Southeast Asia and CIS countries by partnering with strategic local companies, as we did recently in Sri Lanka and Oman. We will also remain focused on strengthening our capabilities in third party logistics services to meet the increasing demand as outsourcing trends continue in our core markets.”
Along with improving its financial and operational performance, Aramex will continue to pursue initiatives that fulfill its sustainability commitments in 2010. These include adopting environmentally-friendly practices in its operations, actively engaging in community development and partnering with institutions to foster an entrepreneurial environment in which youth and SMEs can thrive.
“As a major logistics player in the region, we have a strategic interest in being a facilitator of trade and busine
ARA being a Fundamentally strong and health company, now with such good news (FY2009) will rise today. Not to mention the distribution of dividend in coming days... (my prediction)
not disagreeing at all on Aramex.
Here is the problem: HITS is a brand new stock. There is very little point of reference to work with it. People will get enamoured if this stock continues to do very well in a general UAE bear market. Once they get enamoured the massacre will come, inevitably.
While not disagreeing on Aramex, an individual limit up is a rare event for a major stock in a general bear market. You might be right, who knows?
Limit ups will occur more frequently with very illiquid stocks.
" the current DFM situation is non-predictable...
Seems that no good news can lift the market now... it react only to bad news"
First, praying is not a strategy.
Second, and this has nothing to do with what you wrote earlier, DFM is not as what some people on this forum write sometimes, the worst performing stock market in the world. Over the past 10 years, over the past 5 years, and even through 2009, it definitely is not the worst. In fact it comes close to average in terms of performance. It's mostly a very volatile stock market to be invested in.
Going back to what you write about "non-predictable" let me tell you that no one can predict anything with any consistent and reasonable level of certainty. That is a supreme fact of life.
Also, markets do not react to news in any consistently predictable fashion, in this case meaning figures and statistics (as with the US GDP report the other day).
What moves markets, and it unfortunately affects good and bad companies for better or for worst, is liquidity. That's money in the system.
For the next few years, major players are paying down debt. The stock market in every country serves as a store of wealth. It's like a bank account that's being tapped into to service liabilities.
When this happens , and it usually happens for a few years, markets can go down further than you would want to believe.
The UAE's first leg of the bear market was to relieve bubble conditions.
Now the second, or third leg, is to serve some people who are in dire need of cash.
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