Aramex today announced its financial results for the second quarter and the first half ended 30th June 2019.
The company's Q2 2019 revenues grew by four percent to AED1,279 million, compared to AED1,232 million in Q2 2018. Revenues would have grown by seven percent 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.
According to a statement, Aramex’s revenues in H1 2019 grew by four percent to AED2,512 million, compared to AED2,422 million for the same period of 2018.
Net profit for the Q2 2019 rose by one percent to reach AED123 million, compared to AED122 million in Q2 2018. Net profit was negatively impacted by AED8.4 million due to the implementation of IFRS16 related to accounting for leases. Excluding that impact, Q2 2019 net profit would have grown by eight percent, the statement added.
Aramex’s net profit in H1 2019 grew by two percent to AED231 million, compared to AED226 million for the same period of 2018. Excluding IFRS16 impact of AED14.3 million, H1 2019 net profit would have grown by nine percent.
Commenting on the results, Bashar Obeid, CEO of Aramex, said, "Strong demand from e-commerce continues to spur growth in volumes we handled over the second quarter. 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."
He added, "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."
Aramex's cross-border international express business grew by 11 percent to AED586 million. Express volumes grew by 20 percent in Q2 2019, yet lower yields impacted margins.
The domestic express business decreased by two percent to AED257 million, mostly impacted by the strategic restructuring in India and fluctuations in foreign currency. Excluding those factors, the domestic express would have grown by seven percent, whereas Aramex’s core markets recorded strong double-digit growth.
Freight-Forwarding decreased by six percent to AED277 million, as it continues to be affected by the regional economic uncertainty.
The integrated logistics and supply chain solutions business enjoyed robust growth of 17 percent to AED85 million, owed in large part to Aramex’s efforts to service the major regional retailers’ strong appetite to tap online sales, leading to a strong demand for warehousing, sorting, and last-mile delivery solutions.