UAE-based logistics and transportation solutions provider, Aramex, has reported a marginal increase of 1 per cent in net profit for 2019, it announced on Monday.
The logistics service provider posted net profit of Dhs497.4m in 2019, compared to Dhs492.6m in 2018. However, Aramex’s full year revenues for 2019 stood at Dhs5.2bn, up 3 per cent from Dhs5.0bn in 2018.
At the end of 2019, Aramex’s total cash stood at Dhs1bn and free cash flow at Dhs294m, attributed to its prudent financial management, a statement said.
Aramex’s international express business grew 3 per cent to Dhs2.3bn, compared to Dhs2.2bn in 2018, most notably coming from USA, UK, Singapore and Saudi Arabia.
Meanwhile, its domestic express business rose 5 per cent to Dhs1.1bn in 2019, compared to Dhs1.0bn in 2018, driven by the rise in domestic e-commerce across GCC and Australia.
Aramex’s freight-forwarding business dipped 2 per cent to Dhs1.1bn, compared to Dhs1.1bn in 2018 due to continued regional economic uncertainty.
Logistics and supply chain management operations in 2019 rose 18 per cent to Dhs355m, compared to Dhs302m in 2018, on the back of strong demand from traditional retailers.
“In 2019, we strategically focused efforts on upgrading our operations and deepening our commitment to building a digital infrastructure that enables a higher service level to customers, more efficient processes to handle strong growth in shipment volumes and partial mitigation of impacts from pricing pressure, especially in our express business,” said Bashar Obeid, chief executive officer, Aramex.
“Simultaneously, we are fast tracking our commercial transformation process to encourage accelerated growth in our B2B business lines such as fashion retail, telecommunications, manufacturing, chemicals and healthcare, which will help us diversify our revenue mix.”
Q4 2019 Business Performance Highlights:
Aramex’s Q4 2019 revenue totaled Dhs1.4bn, up 3 per cent from Dhs1.4bn in Q4 2018. Meanwhile, its last quarter net profit dipped 1 per cent to Dhs152.5m, compared to Dhs154m in Q4 2018.
Aramex’s international express business declined 4 per cent to Dhs673m, compared to Dhs702m in Q4 2018, predominantly due to incessant pricing pressure for e-commerce business in its Asian markets.
The firm’s domestic express business grew 20 per cent to Dhs324m, compared to Dhs270m in Q4 2018. Meanwhile, freight-forwarding witnessed flat growth of Dhs294m from Dhs293m in Q4 2018.
Aramex’s logistics and supply chain management business surged 15 per cent to Dhs97m, compared to Dhs84m in Q4 2018, driven by growth in business across the company’s key markets.