Dubai – Mubasher: Aramex announced a year-on-year increase of 1% in profits during the second quarter of 2019.
Net Profit amounted to AED 123 million in Q2-19, compared to AED 122 million in the same period last year.
The company clarified that its achieved net profit was negatively impacted by the AED 8.4 million due to the implementation of IFRS16 related to accounting for leases. It further added that excluding that impact, the quarterly net profit would have grown by 8%.
Aramex, a leading global provider of comprehensive logistics and transportation solutions, noted that its revenues grew by 4% to total AED 1.279 billion in Q2-19 from AED 1.232 billion in Q2-18, according to a bourse disclosure on Wednesday.
During the first half that ended 30 June 2019, Aramex registered an increase of 2% in net profit to AED 231 million from AED 226 million in the same period a year earlier. Aramex highlighted that excluding IFRS16 impact of AED 14.3 million, the interim net profit would have grown by 9%.
As for revenues in the H1-19, the company posted an increase of 4% to AED 2.512 billion, compared to AED 2.422 billion in H1-18. Aramex noted that its revenues for the semiannual financials would have increased by 7%, excluding the impact from currency fluctuations and the strategic restructuring of its operations in India.
“Our Domestic Express registered outstanding performance and International Express also enjoyed double digit growth. 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,” CEO of Aramex Bashar Obeid commented.
Meanwhile, Chief Operating Officer at Aramex Iyad Kamal noted that “Volumes growth was very encouraging in the second quarter, with Domestic Express volumes surging 42% in core markets, especially in the GCC and Levant region.”
Kamal added, “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. Overall, Express volumes expanded by 20%, thanks to winning new international e-tailers and receiving increased orders from existing ones.”
It is worth noting that during the first quarter of 2019, the company posted a 4% year-on-year increase in profits to AED 108 million from AED 103 million in Q1-18
