Aramex’s Q2 revenues grow by 4%

Aramex

Aramex has announced its Q2 results for the quarter ending June 30, 2019. Its revenues grew by 4% to AED*1.279m compared with Q2 2018. Revenues would have grown by 7% excluding the impact from currency fluctuations, as well as the company’s strategic restructuring of its operations in India through exiting the Domestic Express market. Net profit for the Q2 2019 rose by 1% to reach AED123m, compared with AED122m in Q2 2018. Net profit was negatively impacted by the amount of AED8.4m due to accounting adjustments. Excluding that impact, Q2 2019 net profit would have grown by 8%.

Its revenues in H1 2019 grew by 4% to AED2.512m, compared to AED2.422m for the same period of 2018. Net profit in H1 2019 grew by 2% to AED231m, compared to AED226m H1 2018. Excluding accounting changes of AED14.3m, H1 2019 net profit would have grown by 9%.

Aramex’s cross-border International Express business revenues grew by 11% to AED586m. Express volumes grew by 20% in Q2 2019, however, lower yields impacted margins.

The Domestic Express business revenues decreased by 2% to AED257m, mostly impacted by the strategic restructuring in India and fluctuations in foreign currency. Excluding those factors, the Domestic Express would have grown by 7%, whereas Aramex’s core markets recorded strong double-digit growth.

Freight Forwarding revenues also decreased by 6% to AED27m, as it continues to be affected by the regional economic uncertainty.

The Integrated Logistics & Supply Chain Solutions business enjoyed revenue growth of 17% to AED85m, owed in large part to Aramex’s efforts to service major regional retailers’ appetite to tap into online sales. This led to increased demand for warehousing, sorting, and last mile delivery solutions.

Bashar Obeid, Chief Executive Officer of Aramex, commented on the remainder of 2019, “For the rest of the year, we forecast global e-commerce volumes to continue to positively contribute to top line growth, while lower yields will constrain margins and profitability. However, we will carry on boosting our investments in last-mile delivery solutions and enhancing our service levels on the ground to ensure Aramex maintains and grows its market share in the Express business.”

Source: Aramex

*$ = AED3.67 / € = AED4.05