Aramex posts 13% jump in net profit

Quarterly net hits Dh103.4m, while revenues rise 8% to Dh1.2b

Logistics firm Aramex said yesterday it has posted a 13 per cent year-on-year rise in quarterly profits, to Dh103.4 million for the first three months of this year.

That’s built on the back of an 8 per cent rise in quarterly revenues, to Dh1.19 billion.

Dubai-based company’s CEO Bashar Obeid said the increases were due to continued growth in e-commerce and Aramex’s ongoing restructuring. “We had a good start in the first quarter of 2018, launching several strategic initiatives to support future growth and enhancing our operational efficiencies, expanding last mile capacity and accelerating our digital transformation journey,” he said in a statement.

Dubai Financial Market-listed Aramex’s international express business grew 10 per cent to Dh500 million, which the firm attributed to strong crossborder e-commerce growth in most regions, but specifically from Europe and the Gulf Cooperation Council (GCC). The firm said Asian business was modestly lower in the first quarter, but it remains confident of the region’s growth outlook for the rest of the year.

The firm’s domestic express business grew by 9 per cent to Dh265 million, driven by healthy growth in domestic e-commerce in key markets such as the GCC countries and Africa.

Freight forwarding grew by 3 per cent to Dh284 million, as the firm’s oil and gas business in the GCC and Asia benefited from an improving oil and gas industry.

Obeid added: “We continue to maintain a positive outlook for the year, as we expect to continue to benefit from the boom in global e-commerce activities. We expect stronger contribution from e-commerce activities to our domestic express services in the future as major e-Tailers are establishing fulfilment centres in our core markets.”