Dubai – Mubasher: Aramex achieved an increase of 1% in net profit during the third quarter of 2019 when compared to the same period a year earlier.
Earnings amounted to AED 113.8 million in Q3-19 when compared to AED 112.9 million in Q3-18, according to a bourse disclosure on Thursday.
This increase in Q3-19 net profit is attributed to “tighter yields and pricing pressure from the cross-border e-commerce business, as well as the implementation of IFRS16.”
Aramex clarified that excluding IFRS16 impact, the company’s net profit would have increased by 7% during the third quarter this year.
Meanwhile, revenues of the period stood at AED 1.270 billion, compared to AED 1.239 billion in Q3-18 to register a 2% year-on-year growth.
“Revenues would have grown by 5% excluding the company’s strategic restructuring of its operations in India and currency fluctuations,” Aramex said.
It further noted that the increase in revenues over the quarter was lower than expected due to “tighter yields on e-commerce business as a result of pricing pressure.”
The nine-month period in 2019
From January to September 2019, Aramex registered a net profit of AED 344.9 million which is 2% higher than AED 338.6 million in the same period last year.
“Excluding an IFRS16 impact of AED 21.3 million, Aramex’s net profit would have grown by 8% over the nine-month period,” the press release added.
Revenues grew by 3% to AED 3.782 billion in the nine-month period this year, compared to AED 3.661 billion in the corresponding period of 2018.
CEO of Aramex Bashar Obeid commented, “As we expect the low-margin environment to continue over the next quarter, we will remain focused on improving service levels on the ground to prioritise quality across the delivery journey; and optimising costs throughout the business to build further resilience.”
Meanwhile, Iyad Kamal, the chief operating officer at Aramex, said, “Over the third quarter, we invested into the growth of the business and into physical capacity on the ground with the ultimate objective of shortening delivery times and improving the overall customer experience.”
He further highlighted, “We also did a major upgrade in an advanced automation system at our facility in New York to streamline sorting, processing and shipment transit times from North America to the region, which is a growth lane for us. Our innovative new models, such as Aramex Fleet, place us in strong standing to handle the surge in capacity around the upcoming high season.”
It is worth noting that during the second quarter of 2019, Aramex posted a net profit of AED 123 million in Q2-19, compared to AED 122 million in the same period last year.
