Aramex, an international post and parcel delivery firm based in Dubai, has announced its financial results for 2016, including double-digit growth of AED1.6bn (US$315m) for the fourth quarter (Q4) of the year, an 18% increase when compared with the AED982m (US$267m) reported in the corresponding period of 2015.
The company’s full year net profits increased by 37% to AED426.6m (US$116m), compared with AED311.3m (US$84.8m) in 2015. The net profit for Q4 reached AED131.8m (US$35.9m), which represents a record increase of 129% compared with AED57.6m (US$15.7m) reported in Q4 2015.
Hussein Hachem, CEO, Aramex, 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, Aramex’s International Express business performed strongly, with revenues growing by 30% to AED498m (US$136m). Strong growth in cross-border e-commerce continued to be a primary driver of these revenues, especially in Asia, Europe and the US markets. The Domestic Express business saw revenues of AED247m (US$67.2m) in Q4, an increase of 30% over the same period in 2015. This was primarily driven by the Fastway Limited acquisition. Aramex’s Logistics and Supply Chain Management increased by 29% in Q4 to AED67.3m (US$18.3m). This increase is mainly attributed to Aramex’s investment in AMC Logistics’ Joint Venture in Egypt, which became part of Aramex’s financial consolidation starting January 2016.
“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,” added Hachem. “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.”
January 30, 2017