Aramex, a leading global provider of logistics solutions, has posted has posted a net profit of Dh492.6 million ($134 million) for 2018, as compared to Dh435.4 million for the previous year, marking an increase of 13 per cent.

Excluding the one-off impairment from the divestment of Aramex Global Solutions (AGS), the company’s net profit in 2018 would have increased by 24 per cent to Dh538.3 million compared to the prior year period, thanks to improvements in efficiencies, which helped reduce overheads as a percentage of gross profits to 75.5 per cent in 2018 from 78.4 per cent in 2017, a company statement said.

The company’s full year revenue increased by 8 per cent to Dh5.086 billion ($1.38 billion), compared to Dh4.721 billion in FY 2017.

Aramex’s Q4 2018 revenue grew by 8 per cent to Dh1.425 billion, compared to Dh1.324 billion in Q4 2017. Q4 net profit dropped by 7 per cent to Dh154 million, compared to Dh165 million in the corresponding period of 2017. Excluding the one-off impairment of Dh46 million from the divestment of AGS during the quarter, net profit would have risen by 21 per cent to Dh199.7 million, the statement said.

As part of Aramex’s strategy to independently tap into the growth of global e-commerce markets, the company announced its divestment of its full 60 per cent stake in AGS to Australia Post in Q4 2018. While this transaction incurred a one-off impairment of Dh46 million for Aramex, it will not have any impact on Aramex’s financial results in the future, since this joint venture was only accounted for on equity basis and had an immaterial contribution to the company’s net income.

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, noted: “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.

Commenting on Aramex’s outlook for 2019, Bashar Obeid said: “We finished 2018 on a very positive note, resulting in one of our strongest financial years to date. In 2019, we will remain focused on implementing a lean and efficient business model, enabling Aramex to remain resilient against global geo-economic challenges. We will also remain open to unlocking opportunities in new sectors and geographies, particularly in specialized industry verticals where we see strong demand, to further enable B2B growth.”

“We are well positioned to benefit from the ongoing growth of the global e-commerce industry and will continue to ensure that the business remains diversified and efficiently operated, with a strong focus on improving last-mile delivery,” he added. – TradeArabia News Service