Aramex posts Dh108M profit

dubai — Logistics and transportation firm Aramex on Wednesday said its first-quarter 2019 net profit grew four per cent to Dh108 million compared to Dh103 million in the same quarter last year.

Its Q1 revenues increased four per cent to Dh1.234 billion as compared to Dh1.190 billion.

The Dubai-listed firm’s said it took a hit of Dh10.6 million due to implementation of IFRS16 and currency fluctuations. However, Aramex’s strategic restructuring of domestic operations in India delivered a positive contribution of Dh6.7 million to net income. Excluding those impacts, the bottom line would have grown by eight per cent.

“We continue to benefit from the healthy growth in global ecommerce volumes; however, we have started witnessing pressure on International Express margins due to lower and more competitive pricing,” said Bashar Obeid, CEO of Aramex.

“Another trend that positively impacted our business this quarter was the entrance of major Middle East retailers into the online sales space as part of an omni-channel approach, which is why we are investing in servicing this promising market,” said Iyad Kamal, chief operating officer at Aramex.

Aramex’s cross-border International Express business grew seven per cent to Dh533 million. While the Domestic Express business dropped by three per cent to Dh257 million. “We continue to maintain a positive outlook for the remainder of the year. However, the fast-changing landscape means that we will have to grow market share by being more competitive with our pricing, more efficient with our offerings and exceling at the quality of our service,” said Obeid.