Tuesday 21 May 2019

Hachem ... innovation and technology were two core
areas of focus this year

Aramex reports $116m net profit for 2016

DUBAI, January 30, 2017

Aramex, a leading global provider of logistics and transportation solutions, has reported that the company’s 2016 full year net profits increased by 37 per cent to Dh426.6 million ($116.1 million), compared to Dh311.3 million ($84.7 million) in 2015.

The company said its revenues for 2016 reached Dh4.3 billion ($1.18 billion), up by 16 per cent compared to Dh3.75 billion ($1.02 billion) in 2015.

The company’s fourth quarter revenues saw double-digit growth of 18 per cent to Dh1.15 billion ($315 million), compared to Dh982 million ($267 million) in the corresponding period of 2015, said a statement from Aramex.

The fourth quarter net profits reached Dh131.8 million ($35.8 million), which represents an increase of 129 per cent, compared to Dh57.6 million ($15.6 million) in Q4 2015, it added.

Hussein Hachem, chief executive officer, Aramex, said: “We are extremely pleased to report record results with our 2016 financial performance.”

“Despite global economic uncertainty and the slowdown in the GCC region, our asset-light business model enabled us to respond quickly to volatility, outperform the market and deliver on our promise,” he said.

“Our commitment to innovation and technology were two core areas of focus this year, allowing us to enhance our customer experience and expand our business operations,” he added.

“We will continue to leverage this strategy, finding innovative ways to develop our global express solutions to serve the growing demand for our last-mile solutions across all our markets,” he concluded.

In Q4 2016, Aramex’s International Express business performed strongly, with revenues growing by 30 per cent to Dh498 million ($135.5 million). Strong growth in cross-border e-commerce continued to be a primary driver of these revenues, especially in Asian, European and the US markets.

The domestic express business saw revenues of Dh247 million ($67.2 million) in Q4, an increase of 30 per cent from Q4 2015. This was primarily driven by the Fastway Limited acquisition.

Aramex’s Logistics and Supply Chain Management increased by 29 per cent in Q4 to Dh67.3 million ($18.3 million). This increase is mainly attributed to Aramex’s investment in AMC Logistics’ Joint Venture in Egypt, which became part of Aramex’s financial consolidation starting January 2016.

Freight revenues decreased, by 9 per cent to Dh272 million ($74.05 million) in Q4. Freight continued to be affected by lower selling rates, which was driven by lower oil prices and global currency fluctuations.

Moreover, 2016 was a milestone year for new partnerships and innovations across the Aramex global network. The company fully acquired Fastway Limited to further strengthen its presence in Australia and New Zealand.

Aramex also formed a joint venture with Australia Post to launch the “Aramex Global Solutions”, a hybrid product accessible through postal offices worldwide.

As part of the company’s strategy to scale up through a variable business model, Aramex invested in a number of delivery startup businesses worldwide in order to optimize its last-mile delivery solutions.

Additionally, the company invested in a new global addressing system which allows Aramex to reach more customers in off-the-grid locations. It also launched its innovative mobile app to improve the delivery experience for customers.

In 2016, Aramex continued automating its sortation centres globally, in order to stay on top of the increasing demand in its cross-border e-commerce business. Aramex also rolled out its enterprise resource planning (ERP) platform, which will enable it to adopt industry best practices and further strengthen collaboration across key business units.

Hachem added: “These robust results have put us in a strong position to deliver on our ongoing business strategy as we move into the new fiscal year. Looking ahead, we will continue to focus on investing in technology to further transform the business into a technology-driven enterprise and lead the market by sourcing disruptive, digital-based solutions.”

“While we remain confident in this approach, we are also cautious in our outlook due to global economic uncertainties, however, we are excited about the positive growth we have achieved so far and look forward to carrying this momentum into 2017,” he concluded. – TradeArabia News Service

Tags: | profit | Aramex | Net | 2016 |

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