Aramex reports AED4.72bn in 2017 revenue, records AED435.4mn profits
Aramex, global provider of comprehensive logistics and transportation solutions, announced its financial results for the fourth quarter and full year ended 31st December 2017.
Aramex’s Q4 2017 revenues registered double-digit growth of 14% to AED1.324bn, compared to AED1.158bn in the corresponding period of 2016. Q4 net profits reached AED165mn, which represents an increase of 25%, compared to AED131.8mn in Q4 2016.
2017 full year revenues reached AED4.721bn; up by 9% compared to AED4.343bn in 2016. Revenues were impacted by currency fluctuations, mainly in Egyptian Pound. Excluding this impact, year-on-year revenues would have grown by 11%, reported the company.
Aramex’s net profits in 2017 increased by 2%, to AED435.4mn, compared to AED426.6mn in 2016. Net profit growth in 2017 was impacted by the one-time fair value adjustment related to Aramex’s investment in AMC Logistics joint venture in Egypt in Q2 2016. Excluding this adjustment, net profits would have grown by 13% in 2017, reported the company.
Commenting on the results, Bashar Obeid, chief executive officer of Aramex, said: “We are pleased to report robust performance in 2017. Our strong results were mostly driven by the surge of cross-border eCommerce activities globally, which continue to fuel the growth of our international express business. While being excited about the growth potential of global eCommerce business, we have witnessed an exceptional growth of express volumes in Q4, which highlighted a need to boost investments in last-mile capacity solutions across all our key markets.”
Commenting on Aramex’s outlook for 2018, Obeid added: “We are very confident about the growth potential in 2018 amid the continuous boom in eCommerce activities globally, yet we have to remain cautious about the changing competitive environment that requires highest levels of efficiencies and operational effectiveness in meeting customers’ expectations. We will be focusing on key strategic initiatives in 2018 aiming at transforming our business into a technology-driven enterprise and enhancing our operational efficiencies through various cost restructuring programs. In addition to the solid growth in express revenues, I am delighted that our freight-forwarding services, mostly driven by oil and gas activities, started to pick up in the fourth quarter, providing us with great business potential. We are extremely positive about the growth signs of these services and will be expanding our investments in technology and talent to accelerate the growth of supply chain and freight-forwarding services in various market segments and across all our markets.”
Iyad Kamal, chief operating officer at Aramex, added: “2017 was a very successful year for us and we are keen to carry the momentum into 2018 and beyond. We will continue to enhance our operations by leveraging innovative technologies that will lead to a further enhanced customer experience and improved business efficiencies. We are also exponentially expanding our capacity on the ground to effectively accommodate the dynamic growth we are witnessing in global eCommerce activities.”