E-commerce growth boosts Q1 profits of Dubai's Aramex
Aramex, the Dubai-based provider of logistics and transportation solutions, registered double-digit net profit growth of 13 percent in the first quarter of 2018.
Profits rose to AED103.4 million, compared to AED91.8 million in Q1 2017 while Q1 revenue grew 8 percent to AED1.2 billion, mainly attributed to the continued growth of global e-commerce activities.
Bashar Obeid, CEO of Aramex, said: “We are pleased to report another quarter of strong performance, thanks to the continued growth in global e-commerce activities and the ongoing transformation and restructuring of the business.
"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.”
Aramex said its International Express business grew by 10 percent to AED500 million due to the strong growth in cross-border e-commerce across most regions, specifically from Europe and the GCC markets.
Asia was modestly lower in the first quarter 2018 but the company said it remains confident on this region’s growth outlook for the remainder of the year.
The Domestic Express business grew by 9 percent to AED265 million, driven by healthy growth in domestic e-commerce activities across Aramex’s key markets, mainly in the GCC and Africa.
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 fulfillment centers in our core markets.
"Our focus this year will be on accelerating the digital transformation, boosting operational efficiencies and enhancing our B2B and Freight-Forwarding capabilities across the network.”