Aramex posts 5 percent decline in profits for Q1 2017
Aramex on Sunday posted a 5% decline in its profits for the first quarter of 2017 compared to figures from the year-ago period.
The Dubai-listed company achieved AED 91.8 million ($25 million) in net profit in Q1-17, down from AED 96.9 million ($26.38 million) in the same period in 2016, according to a bourse filing.
Profits fell on the back of a provision related to the company’s incentive scheme, Aramex said, noting that the exclusion of this provision would have resulted in a year-on-year profit increase by 8.5% to AED 105.1 million.
First-quarter revenues stood at AED 1.106 billion, up 7% from AED 1.029 billion registered in Q1-16.
“Aramex’s strong revenue performance in the first quarter was driven by growth across Asia-Pacific. Revenues in other regions were affected by currency fluctuations, especially the Egyptian pound, which otherwise would have grown by 12%,” the UAE-based logistics firm said in a statement.
Aramex’s unit International Express recorded double-digit growth in Q1-17, backed by the “robust performance of cross border e-commerce, and continues to be the main driver of growth for Aramex,” the company added.
Meanwhile, the Domestic Express business grew in Q1-17 compared to the same period last year with Asia-Pacific contributing significantly to this growth, whereas freight growth saw a slight rebound in Q1 but was negatively impacted by currency fluctuations, Aramex revealed.
“Despite global and regional economic uncertainty as well as currency fluctuations, our revenue growth was positive and in line with our expectations. International Express was the key driver of growth in Q1 and will continue to drive Aramex’s business strategy and expansion plans,” commented Aramex CEO Hussein Hachem.
“While we are cautious with regards to the GCC outlook, we are confident about carrying the same positive momentum into the second quarter of 2017. Looking further ahead, we will continue to enhance our business model through innovative technologies, with the aim to become a technology-based enterprise and maintain our position as a dynamic and disruptive global logistics player,” he highlighted.
Aramex has rapidly grown into a global brand, recognized for its customized services and innovative products. Listed on the Dubai Financial Market (DFM) and based in the UAE, Aramex is centrally located at the crossroads between East and West, which allows us to provide customized logistics solutions anywhere in the world effectively and reach more businesses and consumers regionally and globally.