Monday 13 July 2020

Aramex reports $30.7m net profit in Q3

DUBAI, October 31, 2018

Aramex, a leading global provider of comprehensive logistics and transportation solutions, reported that its 2018 third quarter (Q3) net profit surged by 38 per cent to Dh113 million ($30.7 million), compared to Dh82 million ($22.32 million) in Q3 2017.

Net profit for the nine-month period ending September 30, increased by 25 per cent to Dh339 million compared to Dh270 million in the prior year period.

Revenue for the quarter rose by 8 per cent to Dh1,239 million, compared to Dh1,143 million in Q3 2017.

Revenue for the nine-month period ending September 30, also increased by 8 per cent to Dh3.661 billion ($996.6 million), compared to Dh3,397 million ($924.8 million) in the corresponding period of 2017.

Bashar Obeid, chief executive officer of Aramex, said: “We are thrilled to record another strong set of results this quarter. The boom in global e-commerce continues to fuel the growth of our top line, with our International Express business growing by an impressive 18 per cent for the period.”

“Furthermore, our 38 per cent surge in net profit is a confirmation of the positive impact our strategic initiatives have been having since the beginning of this year,” he said.

“Today, our internal processes are running more efficiently, operationally we have become leaner, and we have upgraded our service level to our customers. Ultimately, this has helped create efficiencies, improved our cost management, thus supporting the expansion in our bottom line,” he added.

Iyad Kamal, chief operating officer at Aramex, said: “We continue to see the impact of operational changes and investments across the business quarter by quarter and are proud of the progress we have achieved.”

“Investment in technology and digital transformation forms the cornerstone of our strategy, and we have focused heavily on these areas because we know that they are key to delivering our customers the transparency, visibility and flexibility that they demand,” he said.

“We are well positioned to continue this growth momentum and continue to ensure that the business remains diversified and efficiently operated, with a strong focus on improving last-mile delivery,” he added.

In Q3 2018, Aramex's International Express segment witnessed strong double-digit growth, up by 18 per cent to Dh543 million ($147.8 million) compared to Q3 2017. This solid performance was a result of the growth in international cross-border e-commerce across all regions, most notably from Asia and Turkey.

The Domestic Express business dropped slightly, down 3 per cent to Dh254 million ($69.15 million) in Q3 2018, compared to Q3 2017. Despite solid growth across most of Aramex’s core markets, quarterly performance was impacted by the downscaling of operations in India as part of restructuring efforts, in addition to currency exchange fluctuations, mainly the Australian dollar.

Aramex's freight-forwarding business remained stable, rising by 2 per cent to Dh292 million ($79.5 million), as the company focused on diversifying across different geographies and strategic sector verticals, including oil and gas, healthcare and Pharmaceuticals, Aerospace, and Retail.

The company’s logistics and supply chain management business witnessed double-digit growth of 14 per cent, to Dh76 million ($20.69 million) due to the strong demand on Aramex’s warehousing and other value-added services in Q3 2018, most notable in the UAE, Singapore and Africa.

Obeid continued: “We expect to end the year on a solid footing. As such, we will continue to focus on enhancing end-to-end delivery and further improving customer service through investments in technology and digitisation.”

“I am also very optimistic about the growth in the global e-commerce business and will continue to focus efforts on optimal means to capture those rising and evolving opportunities,” he said.

“Accelerating the growth of our B2B and freight-forwarding capabilities across the network remains a key focus area for us for the remainder of the year and beyond,” he concluded. – TradeArabia News Service

Tags: | profit | Aramex | Net | Q3 |

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