Aramex posts 5% jump in 2015 revenues

04/02/2016 05:58 AST

Aramex recorded a five per cent increase in its revenues for 2015 but net profit declined by 2 per cent due to a one time provision of around Dh46.4 million for employees' incentive scheme.

Its chief executive Hussein Hachem said the company is optimistic for 2016 and will continue to look for future acquisitions in key markets.

The Dubai-listed courier reported Dh3.84 billion revenues for 2015, compared to Dh3.64 in 2014. Its fourth quarter revenues increased by five per cent to Dh1 billion over Dh957 million in 2014.

Exposure to major currency fluctuations, primarily the euro, South African rand and Australian dollar, had a 4.4 per cent negative impact on full year revenues, which would have resulted in an increase of 9.4 per cent in total annual revenues and 8.5 per cent increase in Q4 revenues.

Aramex full year net profits decreased to Dh311 million, compared to Dh318 million in 2014. Its Q4 net profits reached Dh57.6 million, which represent a decrease by 36 per cent, compared to Dh89.4 million in Q4 2014.

This decrease is due to a one time provision to account for an employees' incentive scheme in order to retain and reward talented and senior executives, in-line with international best practices, according to the company.

Excluding this scheme provision, Aramex's Q4 2015 net profit would have been approximately Dh104 million, which represents 16 per cent growth over the same quarter last year. Also, full year net profits would have been approximately Dh358 million for the year 2015, which represents 12 per cent growth over year 2014.

"Despite global economic uncertainty, substantial drop in oil prices and currency fluctuations, our 2015 performance was very solid in revenue growth, primarily in international and domestic express, led by continued expansion of our e-commerce business across key growth markets," Hachem said in a statement.

Aramex's International Express business recorded a strong performance in Q4 with revenues growing 14 per cent to Dh382 million. Revenues were driven primarily by robust e-commerce growth in Aramex's core and growth markets supported by the solid performance in the sector in Europe, the US and the Middle East.

The Domestic Express business saw revenues of Dh211 million in Q4, showing an increase of four per cent from Q4 2014. This is due to increased demand for Aramex domestic services for both businesses and individuals in key markets.

Khaleej Times