Aramex has released its financial results for the third quarter ending September 30, 2019. The company’s revenues grew by 2% year-on-year to AED* 1,270m, compared to AED 1,239m in 2018.
Despite a 13% growth of International Express volumes over the quarter due to strong demand from USA, China and other Asian markets, revenue was lower than expected, only growing by 3% year-on-year to AED 556m. This was mainly as a result of the tighter yields on e-commerce business due to pricing pressure.
Domestic Express volumes rose by 29% due to strong demand in core GCC markets as well as a shift in e-commerce fulfilment business models from international to domestic, which has increased the demand for Aramex’s domestic last mile delivery services. This increase in volumes was reflected in a healthy revenue growth of 6% to AED 271m.
Freight forwarding revenues, on the other hand, dropped by 4% to AED 281m as a result of continued regional economic uncertainty and tensions.
Aramex’s Integrated Logistics & Supply Chain solutions business continued to perform well, seeing a 16% increase in revenues, to AED 88m. This increase is owed in large part to increased demand from oil & gas customers, as well as a rise in the number of traditional retailers tapping into the multi-channel model.
Aramex registered a net profit 1% increase in Q3 2019 to AED 113.8m, compared to AED 112.9m the year before.
For the nine-month period ending September 30, 2019, both revenues and net profit increased by 3% to AED 3,782m and 2% to AED 344.9m respectively.
Source: Aramex
* € = AED 4.07/ $ = AED 3.67
