Aramex net profit up 13% on strong e-commerce

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UAE - Logistics major Aramex registered double-digit net profit growth of 13 per cent in the first quarter of 2018 to Dh103.4 million, compared to Dh91.8 million in the same 2017 period.

The company's revenue grew eight per cent to Dh1.19 billion, from Dh1.106 billion in the first quarter of 2017.

Bashar Obeid, CEO of Aramex, said another quarter of strong performance was due to the continued growth in global e-commerce activities and the ongoing transformation and restructuring of the business. "We had a good start in the first quarter of 2018, launching several strategic initiatives to support future growth and enhancing our operational efficiencies, expanding last mile capacity and accelerating our digital transformation journey."

Obeid said the company expects to continue to benefit from the boom in global e-commerce activities. "We expect stronger contribution from e-commerce activities to our domestic express services in the future as major e-tailers are establishing fulfillment centers in our core markets. Our focus this year will be on accelerating the digital transformation, boosting operational efficiencies and enhancing our B2B and freight-gorwarding capabilities across the network," he said.

Iyad Kamal, chief operating ifficer at Aramex, said the logistics firm continued to focus on redesigning its operations and creating a more efficient and customer-centric business model in the first quarter. "We are committed to expanding our capacity, simplifying complex operational processes by upgrading our technology tools and investing in our employees across all functions," he said.

Aramex's international express business grew by 10 per cent to Dh500 million due to the strong growth in cross-border e-commerce across most regions, specifically from Europe and the GCC markets. The domestic express business grew by 9 per cent to Dh265 million, driven by healthy growth in domestic e-commerce activities across its key markets, mainly in the GCC and Africa.

Freight forwarding grew 3 per cent to Dh284 million, as Aramex's oil and gas business in the GCC and Asia benefitted from an improving oil and gas industry.