Aramex half-yearly net up 20%

02/08/2018 08:27 AST

Logistics provider Aramex announced half-yearly net profit of Dh225.7 million, up 20 per cent on the same period in 2017. Revenues over the six months to June 20 were up 7 per cent at Dh2.4 billion.

Figures for the second quarter showed a grater increase in net profit — up 26 per cent to Dh122 million. Profit for the first half of 2017 was depressed due to a one-off value adjustment related to its joint venture in Egypt with AMC Logistics in 2016.

CEO Bashar Obeid said in a statement: “We are extremely pleased with our results this quarter, which are attributed to the increase in demand for our services across most of our businesses and to our restructuring efforts.

“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. 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.”

Aramex’s international express service saw growth of 10 per cent in the second quarter, with revenues of Dh528 million. The firm said growth was largely due to e-commerce driven cross-border shipments in its key markets — the Middle East, Europe and Africa.

Domestic express services grew 6 per cent, with revenues of Dh262 million. The firm again cited e-commerce is the primary driver, particularly in Saudi Arabia, the UAE and in Africa.

The firm’s freight forwarding service grew 1 per cent, to Dh296 million, driven mainly by customers in the oil and gas sector. Its logistics and supply chain management services grew 16 per cent to DH73 million, which the firm said was due to the growth of business in all regions, notably the UAE, Saudi Arabia, North Africa and Singapore.

Chief Operating Officer Iyad Kamal said: “This year, we have significantly improved our service levels and transit times both, globally and regionally, which is a direct reflection of our investments in delivery capabilities and entering into strong, strategic partnerships to upgrade our services in Europe and the Americas.

“Innovation, which is a key pillar of our strategy, continues to drive solutions across the company’s operations to boost customer experience and maximise efficiencies.”

Gulf News