Dubai-based logistics company, Aramex, confirms e-commerce has spurred volume growth while business transformation accelerates.
For the second quarter and first half ended 30 June 2019, Aramex revenues grew four per cent to AED 1.279 million (€314,253,07).
Aramex said in a statement that revenues would have grown by seven per cent excluding the impact from currency fluctuations, mainly in the South African Rand and Australian Dollar, as well as the company’s strategic restructuring of its operations in India through exiting the Domestic Express market.
Net profit for Q2 2019 rose by one per cent to reach AED 123 million (€30.2 million), compared to AED 122 million (€29.9 million) in Q2 2018.
“Strong demand from e-commerce continues to spur growth in volumes we handled over the second quarter,” said Aramex CEO, Bashar Obeid.
“Our Domestic Express registered outstanding performance and International Express also enjoyed double digit growth,” he said.
“This is a testament to our strong brand, efficient services and increasingly competitive positioning.
“However, lower yields, mainly on the cross-border International Express business and changes in fulfillment models, moderated our top line figures and profitability. Freight-Forwarding business performance came below expectations as it was affected by the regional economic uncertainty, however, today our efforts continue to be focused on commercial restructuring, which will enable us to grow that business line over the long term.
“Our Integrated Logistics and Supply Chain Management business had another great quarter, as a result of our efforts to capitalise on the growing demand for those services, especially from regional retailers wanting to tap omni-channel sales.
“We remain firmly committed to our strategic business transformation, which includes digital, commercial and operational upgrades to cater to the shifting operating environment and to retain and grow market share across different business lines. While such major changes pushed operating expenses for the period, over the long term, we are very positive that our transformation will help us improve our margins and help us further diversify our revenue mix.”
Iyad Kamal, Chief Operating Officer at Aramex, added:
“Volumes growth was very encouraging in the second quarter, with Domestic Express volumes surging 42 per cent in core markets, especially in the GCC and Levant region,” said Aramex Chief Operating Officer, Iyad Kamal.
“The solid growth was owed to higher demand from e-commerce, the upgrade of our services and expansion of operations in some of our core markets, including Saudi Arabia, UAE and Egypt,” he said.
“Overall, Express volumes expanded by 20 per cent, thanks to winning new international e-tailers and receiving increased orders from existing ones. Also, in Q2 2019, we accelerated our digital transformation efforts.
“Today Aramex is leaner and more operationally efficient than ever before. We are implementing technologies that will help reduce transit times and improve delivery accuracy, which will ultimately help us win more new business and enhance operating efficiencies.”