- 30 January 2017
- Transport / Logistics Services
Asset light logistics and delivery company Aramex has reported that its net profits for Q4 were up 129% on last year at AED131.8 million and revenues increased by 18% to AED 1.158bn.
Aramex stated that for the full year ended 31 December 2016, it recorded revenues of AED4343 million which were up by 16% on 2015 and net profits also saw an increase of 37% to AED426.6 million.
Commenting on the results, Hussein Hachem, Aramex Chief Executive Officer said: “Despite global economic uncertainty and the slowdown in the GCC region, our asset-light business model enabled us to respond quickly to volatility, outperform the market and deliver on our promise.
“Our commitment to innovation and technology were two core areas of focus this year, allowing us to enhance our customer experience and expand our business operations. We will continue to leverage this strategy, finding innovative ways to develop our global express solutions to serve the growing demand for our last-mile solutions across all our markets.”
Aramex’s International Express business saw its Q4 revenues growing by 30% to AED 498m. The company said that “strong growth in cross-border e-commerce” continued to be a primary driver of these revenues, especially in Asian, European and the US markets.
Q4 revenues for the Domestic Express business also grow by 30%, to AED 247m in Q4. This was primarily driven by the Fastway Limited acquisition.
Aramex’s Logistics and Supply Chain Management increased by 29% in Q4 to AED 67.3m. The company said that the increase was mainly due to its investment in AMC Logistics’ Joint Venture in Egypt, which became part of Aramex’s financial consolidation starting January 2016.
However, Freight revenues decreased by 9% to AED 272m in Q4. According to Aramex: “Freight continued to be affected by lower selling rates, which was driven by lower oil prices and global currency fluctuations.”
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