Aramex: Q3 strong profit growth offsets flat revenues

Third quarter (Q3) revenues at Middle Eastern logistics player Aramex fell slightly compared to the same period in 2020. Double digit growth in Domestic Express enabled the firm to achieve revenues of AED1.46bn (£292 million). Operating profit however grew 47% to AED67.8 million (£13.6 million).

Over the nine month period to 30 September, the company saw revenues grow 14% to AED4.46bn (£894 million). This was supported by strong growth across all service lines.

Othman Aljeda, Group Chief Executive Officer, Aramex, said: “The impact of our new redesigned operating model is already starting to reflect positively on our performance. With a renewed emphasis on enhancing operating efficiencies, improving service levels to customers, building scale and reorganization of our team of professionals, we have been able to capture growth opportunities in both the Courier Business, and Logistics & Freight-Forwarding business.

Over the last few months, we have witnessed an almost complete return to pre-Covid operating environment and are noticing a few trends that we believe will continue to shape the future of our business and drive our growth strategy. For our Courier Business, we are seeing a surge in domestic express volumes driven by a significant increase in number of retailers opting to tap online sales channel to satisfy the needs of shoppers that have now increased expectations to buy all products, from necessities to luxuries, online. Notably, we are seeing very strong growth for our business in Saudi Arabia, where we have been and will continue to invest in expanding and ramping up our operations. We are also seeing increased competition in the last mile across all our geographies, especially from relatively smaller and new players in the market. However, with our expertise, scale, strong network, technology-enabled operations, user-friendly customer applications, and strong financial position to fund the expansion of our ground operations, we are well-positioned to continue consolidating our leadership position in last mile solutions within our core markets.

On the B2B side, we are deepening our expertise, leveraging our strategically located hubs and global network to customise our offerings in response to customer needs. This has enabled us benefit from the uptick in global economic activity.

We are also enhancing our efforts towards achieving our sustainability strategy and have signed a commitment with the Science Based Target initiates whereby we will work within well-defined science-based carbon targets to accelerate the Company’s goal towards reducing its emissions in line with the Paris Agreement’s goals of curbing a rise in global temperature to well-below two degrees Celsius and towards supporting the governments of the countries we operate in to reach their respective net-zero emission targets.”

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