Q2 profits at Aramex down by 23%

Middle East based logistics firm Aramex has reported that its Q2 revenues of 2017 were up by 4% to AED 1.148bn.

Aramex’ net profits fell by 23% to AED97m. The firm said that this was down to currency fluctuations as well as a one-time fair value adjustment that is related to the firm’s investment in the AMC Logistics JV in Egypt last year.

“Excluding this adjustment,” said Aramex,” Q2 2017 Net Profits would have grown by 15%.”

For the first half of the year (H1) revenues were up 6% to AED 2.254bn, while net profits were down by 15% to AED 188.7 million.

Commenting on the results, Hussein Hachem, Aramex CEO said: “Despite the ongoing global and regional economic uncertainty, we delivered strong results in Q2 2017. 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.”

Aramex said that its Express services recorded double-digit growth in Q2 2017 and continue to be the main contributor to the company’s financial performance.

The company added: “Cross-border e-commerce in particular was the key driver for revenue growth especially in Asia-Pacific where customer demand for package delivery services across the region continues to rise.”

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