Aramex second quarter profits up 15%
JULY 30, 2015: Aramex reported on a 15 percent rise in second quarter net profits as the Gulf Cooperation Council (GCC) region, which includes the United Arab Emirates, continues to drive growth for the Dubai-listed logistics company.
Aramex made Dh92.6 million over the three months ending June 30, 2015 compared to Dh80.8 million a year ago, according to a statement posted on the Dubai Financial Market (DFM). Revenues climbed 6 per cent to Dh967, up from Dh915 million.
The logistics company said in a statement it was able to “strong and broad-based revenue growth across its geographies, despite currency fluctuations.”
“Overall net income was extremely healthy, with strong performances across all of Aramex’s territories, while the GCC remained the key driver of this growth.”
Half-year profits covering the six months to June 30 were Dh179.2 million, up 12.35 per cent compared to Dh159.5 million. Half-year revenues rose 7 per cent to Dh1.896 billion from Dh1.765 billion a year ago.
“We have once again delivered an excellent set of results this quarter. While we’ve had a strong double-digit net income, our revenues would have reached 10 percent had we not been faced with weak global currencies. We are generally pleased with our business performance and particularly with our global e-commerce business solutions,” stated Hussein Hachem, Aramex chief executive officer.
Increasing demand for global only shopping services, particularly in the GCC, Europe and North America, saw Aramex record a significant increase in revenue from its International and Domestic Express segments over the period, the company said.
Demand for domestic business and individual services in Egypt, Saudi Arabia and India has increased so far this year and Australia’s MailCall, which Aramex acquired last year, “contributed positive to Domestic Express,” Aramex said.
But the company said its Freight business “was negatively impacted by the recent drop in global oil prices and currency fluctuations.” It said Logistics, driven by the GCC markets and South Africa, “recorded a particularly strong.”