Aramex’s third-quar­ter rev­enue grows on e-com­merce busi­ness

The National - News - - BUSINESS - DA­NIA SAADI

Aramex, the Dubai-listed courier com­pany, re­ported a 38 per cent in­crease in third-quar­ter net profit thanks to growth in its e-com­merce busi­ness, beat­ing one an­a­lyst’s es­ti­mate.

Net profit in the three months to Septem­ber 30 rose to Dh113 mil­lion, the com­pany said.

Sico Bank in Bahrain had forecast a net profit of Dh100m for the pe­riod.

Rev­enue grew 8 per cent yearon-year to Dh1.24 bil­lion from a year ear­lier pe­riod.

“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,” said Bashar Obeid, the chief ex­ec­u­tive of Aramex.

“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.”

The com­pany’s in­ter­na­tional ex­press busi­ness grew due to ex­pan­sion in cross bor­der e-com­merce across the re­gions the com­pany op­er­ates, in par­tic­u­lar in Asia and Tur­key.

“In­ter­na­tional Ex­press seg­ment per­for­mance re­mained im­pres­sive with seg­ment rev­enues up by 18 per cent yearon-year, con­tribut­ing to the bet­ter than forecast rev­enue and earn­ings growth,” said Ayub An­sari, an an­a­lyst with Sico Bahrain.

The do­mes­tic ex­press busi­ness dropped three per cent from a year ear­lier due to “down­scal­ing of op­er­a­tions in In­dia as part of re­struc­tur­ing ef­forts, in ad­di­tion to currency ex­change fluc­tu­a­tions, mainly the Aus­tralian dol­lar”, Aramex said.

The com­pany’s freight-for­ward­ing busi­ness grew 2 per cent as it con­tin­ued to di­ver­sify its source of rev­enue across ge­ogra­phies and sec­tors, in­clud­ing oil and gas, health care and phar­ma­ceu­ti­cals, aero­space and re­tail.

Aramex’s lo­gis­tics and sup­ply chain man­age­ment busi­ness in­creased by 14 per cent due to strong de­mand on ware­hous­ing and other ser­vices in the third quar­ter mainly in the UAE, Sin­ga­pore and Africa.

“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,” said Mr Obeid.

“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.”

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