Aramex reports 37% net profit growth for 2016
Global logistics and transportation company, Aramex, announced its net profits for 2016 ending 31 December, increasing by 37%, to AED426.6mn, compared to AED311.3mn in 2015.
The company reported the fourth quarter net profits, which reached AED131.8mn, representing an increase of 129%, compared to AED57.6mn in Q4 2015.
Aramexs 2016 revenues reached AED4.3bn, up by 16%, compared to AED3.7bn in 2015, whereas Q4 revenues saw a double-digit growth of 18% to AED1.1bn, compared to AED982mn in the corresponding period of 2015.
Commenting on the results, Hussein Hachem, Aramex chief executive officer, said: We are extremely pleased to report record results with our 2016 financial performance. 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.
In Q4 2016, Aramexs International Express business performed strongly, with revenues growing by 30% to AED498mn, owing to the strong growth in cross-border e-commerce, especially in Asian, European, and the US markets.
The Domestic Express business saw revenues of AED247mn in Q4 2016, an increase of 30%, from Q4 2015. This was primarily driven by the Fastway Limited acquisition.
Aramexs Logistics and Supply Chain Management increased by 29% in Q4 to AED 67.3mn, which is mainly attributed to Aramexs investment in AMC Logistics Joint Venture in Egypt, which became part of Aramexs financial consolidation starting January 2016.
The company fully acquired Fastway Limited to further strengthen its presence in Australia and New Zealand. Aramex also formed a joint venture with Australia Post to launch the Aramex Global Solutions, a hybrid product accessible through postal offices worldwide.
As part of the companys strategy to scale up through a variable business model, Aramex invested in a number of delivery startup businesses worldwide in order to optimise its last-mile delivery solutions. Additionally, the company invested in a new global addressing system, which allows Aramex to reach more customers in off-the-grid locations.
Aramex also launched its mobile app to improve the delivery experience for customers. In 2016, Aramex continued automating its sortation centers globally, in order to stay on top of the increasing demand in its cross-border e-commerce business.
Aramex also rolled out its Enterprise Resource Planning (ERP) platform, which will enable it to adopt industry best practices and further strengthen collaboration across key business units.
Commenting on Aramexs outlook for 2017, Hachem said: These robust results have put us in a strong position to deliver on our ongoing business strategy as we move into the new fiscal year. Looking ahead, we will continue to focus on investing in technology to further transform the business into a technology-driven enterprise and lead the market by sourcing disruptive, digital-based solutions.
“While we remain confident in this approach, we are also cautious in our outlook due to global economic uncertainties, however, we are excited about the positive growth we have achieved so far and look forward to carrying this momentum into 2017.