Aramex net profit jumps 13% in 2018

DUBAI / WAM

Aramex, the leading global provider of comprehensive logistics and transportation solutions, on Tuesday announced its financial results for the fourth quarter and full year ending on December 31, 2018.
The 2018 full year revenue increased by 8% to AED5,086 million, compared to AED 4,721 million in FY 2017. Aramex’s net profit in 2018 increased by 13% to AED492.6 million, compared to AED 435.4 million in 2017. Excluding the one-off impairment from the divestment of AGS, the company’s net profit in 2018 would have increased by 24% to AED538.3 million compared to the prior year period, thanks to improvements in efficiencies, which helped reduce overheads as a perce- ntage of gross profits to 75.5% in 2018 from 78.4% in 2017.
Aramex’s Q4 2018 revenue grew by 8% to AED1,425 million, compared to AED1,324 million in Q4 2017. As part of Aramex’s strategy to independently tap into the growth of global e-commerce markets, the company announced its divestment of its full 60% stake in “Aramex Global Solutions (AGS)” to Australia Post in Q4 2018. While this transaction incurred a one-off impairment of AED46 million for Aramex, it will not have any impact on Aramex’s financial results in the future, since this joint venture was only accounted for on equity basis and had an immaterial contribution to the company’s net income.
Chief Executive Officer of Aramex, said, “We are very pleased to report one of Aramex’s most profitable years. Our 2018 financial 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.”