Aramex has announced its financial results for the year ended December 31, 2020. Revenue for the year totalled AED*5,510m, a year-on-year increase of 9%. The increase in growth was primarily attributed to the Coronavirus crisis accelerating e-commerce activities.
Aramex’s International Express business jumped 10% to AED2,573m, compared to AED2,349m in 2019. The second half of the year staged a strong recovery from a weak first half, as lockdown measures eased and there was a gradual return to normal business operations. However, margins came under pressure from higher line haul costs.
Domestic Express business surged 23% to AED1,362m, compared to AED1,108m in 2019, driven by the rise in domestic e-commerce across the GCC and Australia. In core markets, e-commerce volumes skyrocketed 74% as more consumers relied on e-commerce to buy all types of goods – from essentials to non-essentials.
Aramex’s Freight Forwarding business declined by 5% to AED1,085m, compared to AED1,138m in 2019 due to weaknesses in oil & gas and traditional retail market.
Logistics & Supply Chain Solutions business increased 6% to AED375m, compared to AED355m in 2019, due to solid growth from promising and strategic sectors including healthcare and FMCG.
Commenting on the outlook for 2021, Chief Executive Officer of Aramex, Bashar Obeid said: “Going into 2021 Aramex will have an increased focus on servicing the healthcare and FMCG segment and we will double down our investment in operations and relevant technologies to service those defensive segments. More broadly, we believe we have entered a new era for e-commerce. As an increasing number of consumers depend on online shopping for essentials as equally as luxury goods, we must continue to enhance and expand our e-commerce operations, especially in the last mile, to defend our market position in core markets. From an industry perspective, we are adjusting to lower margins because of more competitive pricing and higher cost environment.”
Source: Aramex
$ = AED3.67 / € = AED4.51
