Daily Archives: February 19, 2014

Aramex announces 9th Consecutive Year of Record Profits

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Aramex (DFM: ARMX), the leading global logistics and transportation solutions provider, today announced its Full Year financial results for 2013, delivering another record year of net profits- the ninth consecutive year of record profits since listing on the DFM.

Aramex’s Q4 2013 revenues increased to AED 850 million, up 5% compared to AED 808 million in the corresponding period of 2012, and net profits rose to AED 76.4 million, up from AED 65.7 million in Q4 2012, an increase of 16%. Aramex’s 2013 Full Year Revenues reached AED 3,325 million, up 8% compared to AED 3,072 million in the previous year. Aramex reported Full Year net profits of AED 278 million, an increase of 14% compared to AED 244 million in 2012.

Commenting on the results, Hussein Hachem, Aramex Chief Executive Officer said: “Aramex has had another very strong set of results in 2013, despite the challenging global market conditions. Our performance was driven by solid revenue growth primarily in international express and supply chain services across our key geographies and growth markets in the Middle East and sub-Saharan Africa. We will continue to aggressively deliver on our strategy to seize current and future opportunities across these emerging markets.”

International Express recorded a strong performance in Q4 with revenues up 11% to AED 285 million. Full Year revenues were up 9% in 2012 at AED 1,057 million, driven primarily by robust e-commerce growth in Aramex’s core markets off the back of a continued increase in demand for global online shopping services across international markets. The e-commerce industry in emerging markets in the Middle East, Africa and Asia is developing at a rapid rate and capitalizing on these trends will remain a major strategic focus for Aramex, with global e-commerce revenues growing by 23% in 2013.

Domestic Express saw revenues of AED 162 million, an increase of 3% in Q4. Full Year revenues were AED 645 million, an increase of 9% on 2012. Growth in Domestic Express lagged International Express due primarily to continuing slow economic conditions in Europe and Asia, offset by robust performance in MENA.

Logistics and supply chain management also performed strongly. Revenues in Q4 grew 11% to AED 45 million, with Full Year revenues growing 23% to AED 170 million, driven by increased demand for retail and oil and gas services across the GCC in particular.

Freight had slower growth due to continued competitive environment mainly in Europe and Asia, with Q4 revenues up 1% to AED 304 million and Full Year revenues up 6% to AED 1,235 million.

Aramex also achieved solid growth across its geographies, with the GCC remaining the largest contributor of revenues in 2013. Aramex’s new operations across its markets in Sub-Saharan Africa also continued to record strong growth, supported by Aramex’s strategy to connect these key growth markets to its global operations and hubs. Africa was a key contributor to the company’s overall performance, gaining momentum following the full integration of operations in key markets with the Aramex global network. The continent will remain a strategic focus in expanding Aramex’s global network and remains a key market for Aramex in bridging new emerging market trade corridors.

Commenting on Aramex’s outlook for 2014, Hussein Hachem said: “We are very confident of carrying our strong performance through 2014. Our role in driving global connectivity by deepening trade links between high-growth markets is paying off. In 2014, we will be actively pursuing acquisitions across these trade routes. We will also continue to capitalise on the shifting global B2C trends from traditional retail to online, further developing and strengthening our e-commerce services to create more efficient platforms and systems for e-retailers across the globe. We remain bullish in our outlook for Africa, Asia and the Middle East and will continue to drive our aggressive expansion plan, capitalising on our asset light operating model and global alliance network which remain our key competitive differentiators.”

In 2014 Aramex will additionally be investing in a number of initiatives to deepen its client services proposition, focusing on upgrading its logistics infrastructure in the UAE and Saudi Arabia in particular.

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Interim results 2014 of Toll

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  • Results largely in line with prior period with NPAT before non-recurring items up 1.4%
  • Improved free cash flow
  • Ongoing investment in depot network and fleet to strengthen competitive position
  • Cost control and productivity gains offset softer volumes in some domestic market sectors
  • Increased dividend

Leading transport and logistics provider, Toll Group, today released its results for the six months ended 31 December 2013.

Revenue was in line with last year at A$4.5 billion, net profit after tax before non-recurring items increased 1.4 per cent to A$176 million and Toll’s interim dividend increased to 13.0 cents per share.

Speaking at today’s announcement, Toll Group Managing Director Brian Kruger said Toll has continued to invest in its core network businesses despite ongoing economic and market driven challenges in both domestic and international markets, particularly in the resources sector.

“This result has been well supported by progress in improving productivity and reducing costs. While we have continued to do well retaining key customers and winning new contracts, the competitive environment has maintained pressure on margins. We remain disciplined in the returns we require when bidding for new work and this has limited revenue growth in some markets,” Mr Kruger said.

“We remain committed to ensuring we build on our position as Australia’s leading transport and logistics provider through continuing our targeted capital expenditure and investing through the economic cycle to position ourselves for future recovery in market conditions.

“Being able to invest in fleet, facilities and systems to meet our customer needs both in Australia and in our developing international business is a key differentiator, along with our focus on safety, with the last six months seeing further improvements in our performance in this critical area. This capital spending is well supported by our One Toll program, which continues to provide increasing benefits across the Group.”

Looking ahead, Mr Kruger said he was not assuming any near-term improvements in the external economic environment, so Toll will continue to focus on improving returns through winning new business, increasing productivity and looking for further opportunities to improve efficiency and management of operating costs.

“Overall, assuming no material change in the external environment we continue to expect underlying earnings before interest and tax for the 2014 financial year to be ahead of the prior year.”

A fully franked interim dividend of 13.0 cents per ordinary share will be paid to shareholders on 4 April 2014, an increase of 0.5 cents.

Source: tollgroup.com

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Interim results 2014 – Disciplined approach underpins consistent result

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  • Results largely in line with prior period with NPAT before non-recurring items up 1.4%
  • Improved free cash flow
  • Ongoing investment in depot network and fleet to strengthen competitive position
  • Cost control and productivity gains offset softer volumes in some domestic market sectors
  • Increased dividend

Leading transport and logistics provider, Toll Group, today released its results for the six months ended 31 December 2013.

Revenue was in line with last year at A$4.5 billion, net profit after tax before non-recurring items increased 1.4 per cent to A$176 million and Toll’s interim dividend increased to 13.0 cents per share.

Speaking at today’s announcement, Toll Group Managing Director Brian Kruger said Toll has continued to invest in its core network businesses despite ongoing economic and market driven challenges in both domestic and international markets, particularly in the resources sector.

“This result has been well supported by progress in improving productivity and reducing costs. While we have continued to do well retaining key customers and winning new contracts, the competitive environment has maintained pressure on margins. We remain disciplined in the returns we require when bidding for new work and this has limited revenue growth in some markets,” Mr Kruger said.

“We remain committed to ensuring we build on our position as Australia’s leading transport and logistics provider through continuing our targeted capital expenditure and investing through the economic cycle to position ourselves for future recovery in market conditions.

“Being able to invest in fleet, facilities and systems to meet our customer needs both in Australia and in our developing international business is a key differentiator, along with our focus on safety, with the last six months seeing further improvements in our performance in this critical area. This capital spending is well supported by our One Toll program, which continues to provide increasing benefits across the Group.”

Looking ahead, Mr Kruger said he was not assuming any near-term improvements in the external economic environment, so Toll will continue to focus on improving returns through winning new business, increasing productivity and looking for further opportunities to improve efficiency and management of operating costs.

“Overall, assuming no material change in the external environment we continue to expect underlying earnings before interest and tax for the 2014 financial year to be ahead of the prior year.”

A fully franked interim dividend of 13.0 cents per ordinary share will be paid to shareholders on 4 April 2014, an increase of 0.5 cents.

Source: tollgroup.com

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New SEKO Store Development Services helps expanding retail businesses open stores faster around the globe

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(SEKO, Feb-19 2014) Secans Global, the leading partner in innovative Global turnkey retail expansion, and SEKO Logistics, one of the world’s fastest-growing supply chain solutions providers, have created a new joint venture to deliver project and process management solutions to help expanding retail businesses open stores faster, with greater control and cost efficiency, and increasing their sales weeks per store in new markets.

The new SEKO Store Development Services (SDS) joint venture extends SEKO Logistics’ foothold in the retail sector which, in September, also saw the launch of SEKO Omni-Channel Logistics, a new integrated eCommerce and logistics division to fast track traditional ‘bricks and mortar’ retailers into the $1 trillion Global eCommerce market.

Launched in the Netherlands in 2000, Secans was founded by a team of store development professionals that understood the expansion challenges facing international retailers and the importance of innovative and customizable supply chain services. Jeroen Scholten, CEO of Secans Global, said: “Store development complexity is increasing all the time, with more diversity in both concepts and brands. Our flexible solutions are designed for any size of retail business, to offer the expertise they need, when and where they need it – limiting risk, increasing speed to market and supporting cost reduction within the store development supply chain. Now we are able to combine Secans’ experience in store development with SEKO’s own suite of supply chain services to retailers as well as its transport and logistics expertise.”

Enabling Global growth

SEKO Store Development Services enables retailers to manage every aspect of a store build around the globe. This includes design and specification, Global sourcing, supplier management, demand planning, regulatory and compliance issues, certifications, logistics and transportation across borders – and for some customers, project management of the store build.

Bob van der Putten, Managing Director of SEKO Logistics, Benelux and Germany, added: “SEKO SDS supports growing retailers in major markets in Europe, North America and Asia as well as in developing markets where we can use our expertise and knowledge to help them achieve their new store strategy. This includes markets where it is traditionally more difficult, such as the BRIC countries and the NEXT Eleven countries, notably Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philippines, Turkey, South Korea and Vietnam. Our unique expertise in dealing with local rules and regulations make opening new stores much easier for our customers and can ultimately add sales weeks to their schedule. For example, for one of our well-known fashion retail clients, we recently helped them to decrease their total store development costs by over 30%, whilst also enabling them to gain three weeks per store opening at the same time.

SEKO SDS is already working for customers in the fashion, food, health, beauty, luxury and audio visual sectors.

Fast, efficient solutions to minimize delays

The SEKO Store Development Services team works with each of the retail customers’ suppliers and use its IT platform and experience to ensure all of the correct information is provided to avoid delays in transporting materials and equipment into the countries where new stores are preparing to open. This includes everything from master data and specifications, correct packaging and labeling, as well as managing accurate pick-up and delivery timescales.

“In terms of demand planning, our systems help retailers to manage their product movements and inventories, locally or in country, ensuring that delays due to insufficient inventory are minimized. We can also help retail customers with planning and forecasting, taking control of their suppliers as soon as the PO is confirmed, making sure that they deliver what the retailer needs, when and how they need it, so that inventory is always correct at any given time. This efficiency of supply means retailers can move into more complex countries and develop more demanding store concepts whilst maintaining their brand consistency – secure in the knowledge that they will have the right materials in place at the right times,” according to Jeroen Scholten.

SEKO SDS offers a range of freight distribution channels to meet different store development needs, supported by warehouses on all continents linked through one system designed to handle store development equipment and materials. ‘White glove’ delivery meets the on-site needs of stores, which also have access to full end-to-end visibility of the supply chain.

Using the customized, web-based SDS transportation and logistics technology solution, retail project managers gain a complete end-to-end view of their store development activities. With desktop and mobile applications, SEKO Store Development Services offers a full suite of technology solutions that includes purchase order management, warehouse management, transportation management, and store asset management.

Retailers can also choose from a range of value-added services, such as construction management to ensure the supply chain fully connects with the build out of a store, a speed to market increase program, Global sourcing, a total store development services cost improvement program, new market entry consultancy, Customs and duty management, and compliance and security.

About SEKO Logistics

We provide a suite of logistics services which enable you to use your supply chain as a competitive differentiator. As a customer centric organization, we are powered by the expertise of our people and our in-house developed, best in class, customizable technology. It is this combination which gives SEKO its strength.

With over 120 offices in 40 countries worldwide, SEKO’s unique shareholder management model enables you to benefit from our specific industry sector expertise, coupled with vital in-country knowledge and unparalleled service at the local level. This unique model provides you with:

  • Hands-on service and support
  • Personal relationships
  • Creative, customized solutions
  • Responsiveness and reliability
  • Flexibility and consistence

We have a flat management structure, with just three layers between you and the CEO, making us ‘fast on our feet’ in delivering solutions that can meet your exact requirements. This lean and nimble structure increases our decision-making speed and gives us an ability to implement customized solutions which far exceed those of our competitors.

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