In the News
Aramex Announces Record Net Profit Growth in Q4 2016
Dubai, UAE; January 30, 2017:
- Q4 2016 Net Profits increased by 129%, and Q4 2016 Revenues increased by 18%
- 2016 Revenues increased by 16% to AED 4,343 million, compared to AED 3,755 million in 2015
- 2016 Net Profits increased by 37%
Aramex (DFM: ARMX), the disruptive leader in the global logistics and transportation industry, today announced its Full Year Financial Results for the year ended 31 December 2016.
Aramex’s 2016 Full Year Revenues reached AED 4,343 million, up by 16% compared to AED 3,755 million in 2015. Q4 Revenues saw double-digit growth of 18% to AED 1,158 million, compared to AED 982 million in the corresponding period of 2015.
The Company’s 2016 Full Year Net Profits increased by 37% to AED 426.6 million, compared to AED 311.3 million in 2015. Q4 Net Profits reached AED 131.8 million, which represents an increase of 129%, compared to AED 57.6 million in Q4 2015.
Commenting on the results, Hussein Hachem, Aramex Chief Executive Officer said:“We are extremely pleased to report record results with our 2016 financial performance. Despite global economic uncertainty and the slowdown in the GCC region, our asset-light business model enabled us to respond quickly to volatility, outperform the market and deliver on our promise. Our commitment to innovation and technology were two core areas of focus this year, allowing us to enhance our customer experience and expand our business operations. We will continue to leverage this strategy, finding innovative ways to develop our global express solutions to serve the growing demand for our last-mile solutions across all our markets.”
In Q4 2016, Aramex’s International Express business performed strongly, with revenues growing by 30% to AED 498 million. Strong growth in cross-border e-commerce continued to be a primary driver of these revenues, especially in Asian, European and the US markets.
The Domestic Express business saw revenues of AED 247 million in Q4, an increase of 30% from Q4 2015. This was primarily driven by the Fastway Limited acquisition.
Aramex’s Logistics and Supply Chain Management increased by 29% in Q4 to AED 67.3 million. This increase is mainly attributed to Aramex’s investment in AMC Logistics’ Joint Venture in Egypt, which became part of Aramex’s financial consolidation starting January 2016.
Freight revenues decreased, by 9% to AED 272 million in Q4. Freight continued to be affected by lower selling rates, which was driven by lower oil prices and global currency fluctuations.
2016 was a milestone year for new partnerships and innovations across the Aramex global network. The company fully acquired Fastway Limited to further strengthen its presence in Australia and New Zealand. Aramex also formed a joint venture with Australia Post to launch the “Aramex Global Solutions”, a hybrid product accessible through postal offices worldwide.
As part of the company’s strategy to scale up through a variable business model, Aramex invested in a number of delivery startup businesses worldwide in order to optimize its last-mile delivery solutions. Additionally, the company invested in a new global addressing system which allows Aramex to reach more customers in off-the-grid locations. Aramex also launched its innovative mobile app to improve the delivery experience for customers. In 2016, Aramex continued automating its sortation centers globally, in order to stay on top of the increasing demand in its cross-border e-commerce business. Aramex also rolled out its Enterprise Resource Planning (ERP) platform, which will enable it to adopt industry best practices and further strengthen collaboration across key business units.
Commenting on Aramex’s outlook for 2017, Hussein Hachem said:
“These robust results have put us in a strong position to deliver on our ongoing business strategy as we move into the new fiscal year. Looking ahead, we will continue to focus on investing in technology to further transform the business into a technology-driven enterprise and lead the market by sourcing disruptive, digital-based solutions. While we remain confident in this approach, we are also cautious in our outlook due to global economic uncertainties, however, we are excited about the positive growth we have achieved so far and look forward to carrying this momentum into 2017.”