While Aramex’s revenues increased by 23% year-on-year in the first half of 2021, its operating and net profits fell by 21% and 31% respectively. In H1-21, revenues were up to AED* 2,996m from AED 2,445m in H1-20. Net profit for that period fell to AED 111.5m, down from AED 161.8m in H1-20. Operating profit dropped from AED 226.2m to AED 179m. Higher line-haul costs caused by the pandemic and investment in capacity to accommodate for higher volumes are listed as reasons for the fall in profit. Despite the fall in profit, Aramex maintained a strong balance sheet with a negative debt position of AED 300m.
Othman Aljeda, Chief Executive Officer of Aramex, said, “I am pleased with our performance in the first half of the year and encouraged by the double-digit growth in almost all our services. The pandemic accelerated consumers’ online shopping behaviours and we were able to immediately capitalise on the shifting trends because our strategically located global hubs enabled us to efficiently handle and deliver shipments from and to all over the world. Our freight forwarding business witnessed a swift recovery to better than pre-pandemic levels thanks to our operational and commercial readiness to service the strong rebound in cyclical industries, specifically oil & gas and retail.”
He continued, stating, “Innovation and technology remain a key strategic area of focus for our business. Over the course of the year, we invested in upgrading our consumer-facing and back-end systems to increase efficiency from first to last-mile while ensuring we give our customers visibility and timely updates on shipment progress.”
Shipping volumes were higher year-on-year in all sectors for Aramex in the first half of 2021. Express volumes increased 19% to 63.9m shipments from 53.8m in the first half of last year. Domestic express revenues increased 16% year-on-year in H1-21 to AED 722.8m. International express volumes, including Shop & Ship, were up 17% to 13m in H1-21 from 11.1m in H1-20. Cross-border express revenues were up 30% in the first half of 2021 as an increase in e-commerce activities in the US, Hong Kong and the UK was weighed down by higher last-mile delivery and line haul costs. Domestic e-commerce shipment volumes were up 12% to 13.4m from 11.9m, although it was the only sector that saw a year-on-year decrease in the second quarter, down 3% in Q2-21 compared to Q2-20.
Elsewhere, revenue in Aramex’s freight forwarding business was up 16% year-on-year in the first half of 2021. Q2-21 revenue was up 23% on Q2-20 at AED 328.6m, the increase driven by strong rebounds in the oil & gas and retail sectors, as well as high growth in the healthcare sector. Aramex’s Integrated Logistics & Supply Chain Solutions business saw revenue increase 19% year-on-year in the first half of this year to AED 123.4m.
Commenting on the outlook for the remainder of 2021, Othman Aljeda said, “We anticipate cross-border e-commerce activity to continue growing at a healthy pace and expect the global economic recovery will be sustained. As a facilitator of global e-commerce and trade, Aramex is well-positioned to benefit from those growth drivers for the remainder of 2021.”
Source: Aramex
*AED=€0.23/$0.27
