Aramex full-year profit rises 13% on higher revenues
Revenue increased 8% and e-commerce underpinned growth of the company's international express business
Aramex, the largest Middle East courier and logistics company, said full-year net profit increased 13 per cent even though the company witnessed a softer fourth quarter.
Net profit for 2018 climbed to Dh493 million from the previous year as revenues increased about 8 per cent to Dh5 billion, the company said in a statement on Tuesday to the Dubai Financial Market, where its shares are traded. Net profit in the fourth quarter of last year fell 7 per cent to Dh154m.
In December, Aramex sold its stake in a joint venture with Australia Post, incurring a one-off impairment of Dh46m, which will have no impact on the company's financial results in the future.
The company's full-year results "reflect the success to date of our digital transformation efforts and the strong growth experienced across all verticals, particularly within our International Express business, which has been well positioned to benefit from the global boom in e-commerce", said chief executive Bashar Obeid. "Throughout 2018 we continued to invest in creating a leaner, more efficient business and transforming our overall operations. This work has paid off and ultimately expanded both our top and bottom line while significantly upgrading our service level to our customers.”
The Dubai-headquartered firm said its international express business grew 15 per cent in the fourth quarter and 13 per cent annually on the back of an uptick in e-commerce across all regions. Its logistics and supply chain management business grew 23 per cent in the fourth quarter and 16 per cent annually.
The company will remain focused in 2019 "on implementing a lean and efficient business model, enabling Aramex to remain resilient against global geo-economic challenges," said Mr Obeid. "We will also remain open to unlocking opportunities in new sectors and geographies, particularly in specialised industry verticals where we see strong demand, to further enable B2B growth."
Established in 1982 as an express courier service, Aramex has grown its operations in 65 countries. The company, the first from the Arab world to list on Nasdaq before delisting to go private and later listing on the Dubai Financial Market, is seeking growth opportunities as it realigns its portfolio subsidiaries.
Updated: February 5, 2019 03:58 PM