- 7 February 2019
- Transport / Logistics Services
While revenues at Aramex grew by 8% in the full year ending 31 December 2018, it also saw net profit fall by 7% in Q4.
Over the year as a whole the Middle Eastern express delivery company saw revenues grow by 8% to AED 5086 million. Net profit for the period grew by 13% to AED 492.6 million. Q4 wasn’t so brilliant for Aramex as it had a one-off impairment of AED 46 million from selling Aramex Global Solutions, leading to profits falling by 7% as against the same period of the year before.
Aramex sold Aramex Global Solutions to Australia Post in Q4. The company says that it will not have any impact on the financial results in the future as, in a statement it said “this joint venture was only accounted for on equity basis and had an immaterial contribution to the company’s Net Income.”
Commenting on the results, Bashar Obeid, Chief Executive Officer of Aramex, said: “We are very pleased to report one of Aramex’s most profitable years. Our 2018 financial results reflect the success to date of our digital transformation efforts and the strong growth experienced across all verticals, particularly within our International Express business, which has been well positioned to benefit from the global boom in e-commerce. Throughout 2018 we continued to invest in creating a leaner, more efficient business and transforming our overall operations. This work has paid off and ultimately expanded both our top and bottom line while significantly upgrading our service level to our customers.”
Iyad Kamal, Chief Operating Officer at Aramex, added: “2018 was a transformational year for Aramex as we reaped the rewards of our new strategy through improved efficiencies and enhanced customer experience. We upgraded our service levels by increasing last mile capacity, enhancement of our next day delivery services within most of our core markets and digitizing the end-to-end shipment journey. Moving forward, we will continue to leverage new innovations such as Aramex Fleet, our crowdsourcing model; and WhatsApp for Business, to create more personalized interaction channels with our customers that deliver the transparency, visibility and flexibility they demand.”
“One of the key highlights of 2019 will be focusing on operations optimization by introducing new operational methods and processes that will further improve our service levels throughout all key verticals,” added Kamal.