Aramex posts 4% Q2 revenue growth

The Dubai-based express carrier and third-party logistics provider’s net profits, however, dropped 23 percent to 97 million Emirati dirham compared with the second quarter of 2016, according to the company’s most recent financial statements.    Aramex saw second quarter 2017 revenues grow 4 percent to 1.14 billion Emirati dirham (U.S. $3.12 million) compared with the same 2016 period, according to the company’s most recent financial statements.
   Net profits, however, decreased 23 percent to 97 million Emirati dirham, however.   
   The Dubai, United Arab Emirates-based express carrier and third-party logistics provider posted declining earnings per share (EPS) of AED 0.06 for the quarter compared with AED 0.08 per share the previous year. Aramex noted while attributable net profit declined due to normalization of the one-time fair value adjustment made to Aramex’s investment in ACM Logistics, net profit grew 1 5 percent when excluding special items. 
   Revenues by segment were skewed towards Express, which encompassed 42 percent of total revenues with an 18 percent increase year-over-year. All other segments decreased year-over-year. 
   “Express contribution to total revenues continues to grow, outgrowing all other businesses,” said Aramex. “The key driver of this development is the fast-growing e-commerce business. Express revenue contribution has grown from 51% to 63% as at 1H 2017. Freight forwarding continues to decline from 38% revenue contribution to 25 percent. Management expects this trend to continue throughout 2017 and beyond.”
   The company attributed the increase in revenues primarily to growth in Asia, the U.S and Africa. Revenues in other regions were affected by currency fluctuations, especially the Egyptian pound.
   “Despite the ongoing global and regional economic uncertainty, we delivered strong results in Q2 2017,” said Aramex CEO Hussein Hachem. “Our asset-light business model and use of innovative technologies to upgrade our operations enable us to successfully manage capacity through a variable cost model, both regionally and globally and maintain our position as the disruptive logistics player.
   “Looking towards the second half of 2017, we are excited about our future prospects for growth, and will be actively identifying acquisitions and strategic partnerships to expand our global reach,” said Hachem.