Aramex H1 net profit drops 15%

dubai — Aramex, logistics and transportation firm, net profits in the first six-month of 2017 fell 15 per cent to Dh188.7 million from Dh222.5 million in the first half of 2016.

The company said in a statement that its half-year revenues increased to Dh2.254 billion, up six per cent, compared to Dh2.134 billion in the first half of 2016.

Hussein Hachem, Aramex’s CEO, said: “Looking towards the second half of 2017, we are excited about our future prospects for growth, and will be actively identifying acquisitions and strategic partnerships to expand our global reach.”

Its Q2 2017 revenues grew by four per cent to Dh1.148 billion compared to Dh1.105 billion in Q2 2016. Net profits in Q2 2017 decreased by 23 per cent to Dh97 million compared to Dh125.7 million in the corresponding period of the previous year.

Second-quarter profit was hit by the one-time fair value adjustment related to Aramex’s investment in AMC Logistics joint venture in Egypt in Q2 2016. Excluding this adjustment, Q2 2017 net profits would have grown by 15 percent.

Its revenue growth in Q2 and H1 was also affected by currency fluctuations, especially the Egyptian pound.

While the performance in GCC in Q2 2017 was relatively slow due to the holiday season and reduced number of working days, as well as the ongoing economic uncertainty, Aramex revenues grew at a healthy rate across Asia and the Asia-Pacific, the US and Africa. — waheedabbas@khaleejtimes.com