Logistics provider reported Q4 profit increase of 25%
Dubai-based logistics provider Aramex announced an increase of 25 percent on its Q4 profit.
Aramex reported Q4 profit reached $45 million (AED165m), up from $36m (AED 131.8m) in the same period last year.
Revenues were also up for the quarter, rising from $315m (AED1,158m to $365m (AED1,324m) – an increase of 14 percent.
The full-year figures saw profits grow by two percent compared to the previous year, reaching $118.5m (AED435.4m), based on revenues of $1.3bn (AED4,721m), which rose 9 percent from the previous year.
Aramex said the company’s full-year revenues were impacted by currency fluctuations, mainly in Egyptian Pound, while its profit growth was impacted by the one-time fair value adjustment related to Aramex’s investment in AMC Logistics joint venture in Egypt in Q2 2016. Excluding this adjustment, net profits would have grown by 13% in 2017.
Bashar Obeid, CEO of Aramex, said the company’s “robust performance” was underpinned by the region’s growth in e-commerce.
“Our strong results were mostly driven by the surge of cross-border e-commerce activities globally, which continue to fuel the growth of our International Express business,” said Obeid.
“While being excited about the growth potential of global e-commerce business, we have witnessed an exceptional growth of Express volumes in Q4, which highlighted a need to boost investments in last-mile capacity solutions across all our key markets.”
While the e-commerce “boom” is likely to further boost the company’s operations in 2018, Obeid said Aramex has to “remain cautious about the changing competitive environment that requires highest levels of efficiencies and operational effectiveness in meeting customers’ expectations”.
“We will be focusing on key strategic initiatives in 2018 aiming at transforming our business into a technology-driven enterprise and enhancing our operational efficiencies through various cost restructuring programmes,” he added.For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.