Aramex reports 7% revenue increase
Aramex has reported revenues for the first quarter (Q1) of 2017 of AED1,106m, which was 7% up on the previous year. Net profits for the quarter were down by 5% to AED91.8m, which Aramex attributed to “the increase in value of the provision related to the company’s incentive scheme”. If this provision were taken out of the equation, Q1 net profits would have been AED105.1m – an 8.5% increase on last year.
Aramex said its performance was driven by growth across Asia-Pacific. “Revenues in other regions were affected by currency fluctuations, especially the Egyptian Pound, which otherwise would have grown by 12%,” added Aramex.
The company’s International Express business saw “double digit growth”, which was “driven primarily by the robust performance of cross border e-commerce”.
Commenting on the results for the first quarter, Hussein Hachem, Aramex CEO said: “Despite global and regional economic uncertainty as well as currency fluctuations, our revenue growth was positive and in line with our expectations.
“International Express was the key driver of growth in Q1 and will continue to drive Aramex’s business strategy and expansion plans.
“While we are cautious with regards to the GCC outlook, we are confident about carrying the same positive momentum into the second quarter of 2017. Looking further ahead, we will continue to enhance our business model through innovative technologies, with the aim to become a technology-based enterprise and maintain our position as a dynamic and disruptive global logistics player.”
Aramex added that “leveraging innovative technologies” will continue to be a key focus (Post&Parcel reader may recall that the group invested in the global addressing system provider what3words last year). The group said that it will “also continue to actively look for future acquisitions and strategic partnerships in key markets to grow its global footprint”.
