Dubai-based parcel delivery and logistics firm Aramex has unveiled its financial results for the first quarter of 2017 (Q1 2017) including a 7% year-on-year increase in revenues to AED1.1bn (US$300m).
In spite of this increase, net profits in Q1 2017 decreased by 5% to AED91.8m (US$25m), down from the AED96.9m (US$26.4m) recorded the previous year.
Aramex has attributed the decline to the increase in value of the provision related to the company’s incentive scheme. Not accounting for this provision, Q1 net profit would have been AED105.1m (US$28.6m), an 8.5% increase from Q1 2016.
Aramex’s strong revenue performance in the first quarter was driven by growth across the Asia-Pacific region. International Express recorded double digit growth in Q1 2017, driven primarily by the robust performance of cross-border e-commerce. Freight growth witnessed a slight rebound in Q1 but was affected negatively by currency fluctuations.
Hussein Hachem, CEO of Aramex, said, “Despite global and regional economic uncertainty as well as currency fluctuations, our revenue growth was positive and in line with our expectations. International Express was the key driver of growth in Q1 and will continue to drive Aramex’s business strategy and expansion plans. While we are cautious with regards to the Gulf Cooperation Council (GCC) outlook, we are confident about carrying the same positive momentum into the second quarter of 2017.
“Looking further ahead, we will continue to enhance our business model through innovative technologies, with the aim to become a technology-based enterprise and maintain our position as a dynamic and disruptive global logistics player.”
May 2, 2017