Aramex Q2 profits surge 26% on e-commerce demand
Aramex has announced its financial results for the second quarter and first half year ended 30th June 2018, with a net profit increase of 26% to AED 122 million due to growing demand for e-commerce logistics solutions.
Aramex’s net profit in the first half of 2018 increased by 20% to AED 225.7 million, compared to AED 188.7 million for the same period of 2017, while revenues for the quarter rose by 7% to AED 1.23 billion, compared to AED 1.14 billion in the corresponding period of 2017.
H1 2018 revenue reached AED 2.42 billion, up by 7% compared to AED 2.25 billion in the same period of 2017.
“We continue to witness a boom in the global e-commerce market, and have been able to reap the benefits of that trend by boosting our investments in last-mile delivery solutions while enhancing our service levels,” said Bashar Obeid, chief executive officer of Aramex.
“We also had encouraging growth in our Freight Forwarding services specifically from the Oil and Gas segment, which enjoyed a double-digit growth this quarter,” he added.
Obeid said that the company would continue to deliver on its digital transformation strategy moving forward.
“We are confident our efforts will reflect positively on our financial performance while enabling us to drive efficiencies and improve our processes by trimming costs and becoming leaner, which will ultimately enhance the customer experience and expand our bottom line,” he said.
Aramex's International Express business grew 10% to AED 528 million compared to the prior year period.
This is mainly attributed to the continued growth in cross-border e-commerce across the company’s key markets in the Middle East, Africa, and Europe.
Aramex’s operations in Southeast Asia is diversifying well in terms of acquiring new customers, which are targeting online shoppers in the Middle East, despite the lower than expected performance this quarter.
In Q2, the Domestic Express business grew 6% to AED 262 million, compared to Q2 2017. E-commerce continues to fuel double-digit growth in most of Aramex’s core markets, namely: Saudi Arabia, UAE and Africa.
The strong growth in Domestic Express was negatively impacted by the drop in business from the company’s operations in India.
Aramex's Freight-Forwarding business rose by 1%, to AED 296 million, where most of the growth was contributed by strong demand from Oil and Gas customers.
The company’s Logistics and Supply Chain Management business increased by 16% to AED 73 million. The growth is attributable to the growth of business across all regions, mainly UAE, KSA, North Africa and Singapore.