Aramex 2015 revenues up but net profits dip due to staff incentive scheme
03 / 02 / 2016
Dubai-based logistics operator Aramex saw its 2015 full Year revenues increase by 5% to AED3.8bn, while annual net profits fell by 2% to AED311m, due partly to a company incentive scheme to retain talented staff.
Exposure to major currency fluctuations, primarily the Euro, South African Rand and Australian Dollar, had a 4.4% negative impact on full year revenues, which would have resulted in an increase of 9.4% in total annual revenues, said the company.
Aramex explained that the net profit decline was due to a fourth quarter one time provision to account for an employees’ incentive scheme “in order to retain and reward talented and senior executives, in-line with international best practices”.
Excluding this scheme provision, Aramex’s fourth quarter 2015 net profit would have been approximately AED104m, a 16% increase over the same quarter last year.
Also, 2015 full year net profits would have been approximately AED358m for 2015, up 12% over prior year.
Hussein Hachem, Aramex chief executive, said: “Despite global economic uncertainty, substantial drop in oil prices and currency fluctuations, our 2015 performance was very solid in revenue growth, primarily in international and domestic express, led by continued expansion of our e-commerce business across key growth markets.
“Aramex has also achieved solid growth across its geographies, with the Gulf Cooperation Council (GCC) remaining the largest contributor to revenues in 2015.”
Hachem added that the results are “reflective of an ever increasingly, fundamentally robust business model and approach to the way we do business worldwide”.
Aramex’s international express business recorded a strong performance in the fourth quarter, with revenues growing 14% to AED382m. Those revenues, said the company, were driven primarily by “robust e-commerce” growth in Aramex’s core and growth markets supported by the solid performance in the sector in Europe, the US and the Middle East.
Hachem added: “2015 was an important year for us to lay the groundwork for launching major initiatives which we are going to activate in 2016.
“While we continue to closely monitor global oil prices and currencies, we feel optimistic towards the outlook of 2016.”
Commenting on last month’s 100% acquisition of Fastway Couriers’ operations in New Zealand and Australia, Hachem stated: “This was our biggest acquisition to date and will play a major role in expanding our reach and services to more customers worldwide.
“We will continue to look for future acquisitions in our key markets while exploring more ways to enhance our e-commerce platform through improved transit times due to the continued boom in cross-border e-commerce.”
Aramex is to launch an app that will give customers “higher visibility, payment flexibility, more locations delivery options and a rating system”.