E-commerce boost for Aramex in 2017

E-commerce and express volume growth saw Middle East based logistics company Aramex report 2017 full-year revenues of AED4.7bn ($1.3bn), an increase of 9% on 2016.
Dubai-headquartered Aramex said that its full year revenues were impacted by currency fluctuations, mainly in the Egyptian Pound.
Excluding the impact of currency fluctuations, mainly in the Egyptian Pound, year-on-year revenues would have grown by 11%.
Bashar Obeid, chief executive of Aramex, said: “We are pleased to report robust performance in 2017. Our strong results were mostly driven by the surge of cross-border e-commerce activities globally, which continue to fuel the growth of our International Express business.
“While being excited about the growth potential of global e-commerce business, we have witnessed an exceptional growth of express volumes in Q4, which highlighted a need to boost investments in last-mile capacity solutions across all our key markets.”
In the fourth quarter of 2017, Aramex’s express business grew by 22% to AED609m. Aramex attributed increase to “the strong growth in cross-border e-commerce across all regions”.
Net profit growth in 2017 was impacted by the one-time fair value adjustment related to Aramex’s investment in AMC Logistics joint venture in Egypt in Q2 2016. Excluding this adjustment, net profits would have grown by 13% in 2017.
Aramex’s fourth quarter 2017 revenues registered growth of 14% to AED 1.3bn, compared with the same period last year.
Domestic express grew by 10%, to reach AED272m in the same three month period of 2017, fueled by the rise in domestic e-commerce across most of the regions, especially in the GCC.
Freight-Forwarding grew by 11%, to AED304m, due to “the excellent rebound in Aramex’s Oil and Gas business in the GCC, and the growth of business in North Africa, Levant, and Asia”.
Aramex’s Logistics and Supply Chain Management business increased by 2%, to AED69m, as a result of the growth of business in key markets and mostly in the UAE and Singapore.
Commenting on Aramex’s outlook for 2018, Obeid added: "We are very confident about the growth potential in 2018 amid the continuous boom in e-commerce activities globally, yet we have to remain cautious about the changing competitive environment that requires highest levels of efficiencies and operational effectiveness in meeting customers’ expectations.
“We will be focusing on key strategic initiatives in 2018 aiming at transforming our business into a technology-driven enterprise and enhancing our operational efficiencies through various cost restructuring programs.”
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