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Wed 1 May 2019 03:15 PM

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Currency fluctuations hit Q1 net profits of Dubai's Aramex

Dubai-based logistics giant Aramex says business continues to benefit from growth in global e-commerce volumes

Currency fluctuations hit Q1 net profits of Dubai's Aramex
Aramex is a Dubai-based provider of logistics and transportation solutions.

Aramex, a Dubai-based provider of logistics and transportation solutions, on Wednesday said first quarter net profit rose by 4 percent to AED108 million ($29.4 million) despite being impacted by currency fluctuations.

The company said net profit was negatively impacted by the amount of AED10.6 million but restructuring of domestic operations in India delivered a positive contribution of AED6.7 million.

Aramex added that Q1 revenues grew by 4 percent to AED 1.2 billion and would have grown by 8 percent excluding the impact from currency fluctuations, mainly in the Libyan Dinar, South African Rand and Australian Dollar.

Bashar Obeid, CEO of Aramex, said: “We continue to benefit from the healthy growth in global e-commerce volumes; however, we have started witnessing pressure on International Express margins due to lower and more competitive pricing.

"Our key priorities for this year are to continue to invest in upgrading our service level across all our core markets, while progressing aggressively in executing our digital transformation roadmap.”

Aramex said its cross-border International Express business grew by 7 percent to AED533 million, mainly attributed to the growth in cross-border e-commerce, which registered double-digit growth across most of Aramex’s markets.

The Domestic Express business dropped by 3 percent to AED257 million, due in large part to the strategic restructuring in India and fluctuations in foreign currency.

Obeid added: "We continue to maintain a positive outlook for the remainder of the year. However, the fast-changing landscape means that we will have to grow market share by being more competitive with our pricing, more efficient with our offerings and exceling at the quality of our service.

"We will carry on investing in automation and other technologies as part of our digital transformation roadmap to improve our operations and enhance the overall customer experience.”

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