Aramex net profit grows 13% in first quarter 2018

Muscat: Aramex, the leading global provider of comprehensive logistics and transportation solutions, reported a double-digit net profit growth of 13 per cent in first quarter of 2018 at Dh103.4 million, compared to Dh91.8 million in 2017 first quarter.
The first quarter revenue also grew 8 per cent to Dh1,190 million, from Dh1,106 million in first quarter 2017, mainly attributed to the continued growth of global e-commerce activities.
Bashar Obeid, Chief Executive Officer of Aramex, said: “We are pleased to report another quarter of strong performance, thanks to the continued growth in global e-commerce activities and the ongoing transformation and restructuring of the business.”
“We had a good start in the first quarter of 2018, launching several strategic initiatives to support future growth and enhancing our operational efficiencies, expanding last mile capacity and accelerating our digital transformation journey,” he added.
“In first quarter of 2018 we continued to focus on redesigning our operations and creating a more efficient and customer-centric business model,” Iyad Kamal, Chief Operating Officer at Aramex, said.
“We are committed to expanding our capacity, simplifying complex operational processes by upgrading our technology tools and investing in our employees across all functions to ensure we deliver service excellence,” he added.
Aramex's International Express business grew by 10 per cent to Dh500 million due to the strong growth in cross-border e-commerce across most regions, specifically from Europe and the Gulf Cooperation Council (GCC) markets. Asia was modestly lower in the first quarter 2018; however, the company remains confident on this region’s growth outlook for the remainder of the year.
The Domestic Express business grew by 9 per cent to Dh265million, driven by healthy growth in domestic e-commerce activities across Aramex’s key markets, mainly in the GCC and Africa.
Freight Forwarding grew by 3 per cent to Dh284 million, as Aramex’s Oil and Gas business in the GCC and Asia benefitted from an improving oil and gas industry.
Commenting on Aramex’s outlook for the remainder of 2018, Bashar Obeid said: "We continue to maintain a positive outlook for the year,as we expect to continue to benefit from the boom in global e-commerce activities.”
“We expect stronger contribution from e-commerce activities to our domestic express services in the future as major e-Tailers are establishing fulfillment centres in our core markets. Our focus this year will be on accelerating the digital transformation, boosting operational efficiencies and enhancing our B2B and Freight-Forwarding capabilities across the network,” he added.