Aramex marks double digit growth

Dubai / Emirates Business

Aramex (DFM: ARMX), a leading global provider of comprehensive logistics and transportation solutions, today announced its financial results for the second quarter of 2016. Aramex’s Net Profits increased by 36% to AED 125.7 million, up from AED 92.5 million in Q2 2015. Revenues were also up
17%, to AED 1,105 million compared to AED 946 million over the corresponding period of the previous year.
Aramex’s Half Year 2016 Revenues increased year-on-year to AED 2,134 million, up 15% compared to AED 1,856 million for the corresponding period of 2015. Net Profits during the same period rose to AED 222.5 million, up from AED 179.2 million in the first half of 2015, a year-on-year increase of 24%. Overall Net Profits registered double-digit growth, impacted by a one-time fair value adjustment related to Aramex’s investment in AMC Logistics joint venture in Egypt amounting to AED 41.6 million.
Commenting on the results, Hussein Hachem, Aramex CEO said: “We are pleased with our Q2 financial performance. Despite global economic uncertainty, continuing oil price volatility and currency fluctuations, our results for the quarter were strong. However, though we finished strongly, we experienced slowing growth at the end of the quarter. We are closely watching this trend so we can quickly adjust to further volatility and remain cautiously optimistic about continuing our growth momentum into the second half of 2016.”
Aramex’s strong revenue performance in Q2 was driven by growth across most of its geographies. Europe, Asia and Australia were the biggest contributors to growth, with the recent acquisition of Fastway Couriers contributing significantly to revenues. The wider Levant region also grew at a healthy rate while in the GCC we witnessed a relatively flat growth.
Strong revenue growth was also recorded in Q2 from the International Express business, primarily in the U.S., Europe and Asia regions, due to a continued increase in demand for cross border e-commerce shopping services. Growth in the Freight business remained relatively stagnant as a result of the drop in global oil prices and currency fluctuations.