Aramex boosts profits in Q2 2015
Global logistics and transportation solutions provider Aramex today announced its financial results for the second quarter of 2015, revealing that its net profits increased 15% to AED 92.6 million ($25.2 million), up from AED 80.8 million in Q2 2014.
Revenues were also up 6%, to AED 967 million compared to AED 915 million over the corresponding period of the previous year.
Following a robust Q1 performance, Aramex's half year 2015 revenues increased year-on-year to AED 1,896 million, up 7% compared to AED 1,765 million for the corresponding period of 2014.
Net profits during the same period rose to AED 179.2 million, up from AED 159.5 million in the first half of 2014, a year-on-year increase of 12%.
Commenting on the results, Hussein Hachem, CEO, Aramex, said: “We have once again delivered an excellent set of results this quarter.
"While we’ve had a strong double-digit net income, our revenues would have reached 10% had we not been faced with weak global currencies.
"We are generally pleased with our business performance and particularly with our global e-commerce business solutions.”
In a statement, Aramex said growth was strong for all of its territories, though the GCC region remained the key driver.
Significant revenue growth was recorded from both the international express and domestic express businesses due to continued increase in demand for global online shopping services, particularly in the GCC, Europe and North America.
Australia’s MailCall, acquired in 2014, contributed positively to domestic express as did an increase in demand for domestic services for both businesses and individuals in key markets, specifically Egypt, KSA and India.
Growth in the freight business was negatively impacted by the recent drop in global oil prices and currency fluctuations, while logistics recorded a particularly strong performance mostly driven by growth in core GCC markets and South Africa.
Regarding Aramex’s outlook for the remainder of 2015, Hachem stated: “We continue to invest in our future, transforming ourselves into a technology enterprise selling business solutions, staying light in asset while managing the process of supply and demand.
"We will also continue to seek potential acquisitions in the second half of 2015, for companies sharing the same synergy with us, and for that we have made available of a new line of credit from a consortium of banks in the UAE.
"While we remain confident about extending our growth momentum and performance into the remainder of 2015, the impact of global oil prices and weak major currencies continue to be areas we will carefully monitor moving forward.”