Aramex has announced its financial results for the third quarter ended 30 September 2020.
Aramex’s Q3 2020 revenue increased by 19% to AED* 1,507m, compared to AED 1,270m Q3 2019. Topline rose across most of the Company’s business lines, with International Express rebounding from the previous quarter as global business activities have generally started to pick up with Covid-19 related lockdowns, mobility restrictions and border closures easing over the three-month period. Revenue for the nine-month period ending 30 September 2020 increased by 7% to AED 4,035m, compared to AED 3,782m the corresponding period of 2019.
Bashar Obeid, Chief Executive Officer of Aramex, said: “We witnessed a very strong set of results over the three-month period, achieving the highest Q3 revenue on record supported by growth across most of our business lines. Covid-19 has accelerated growth in the e-commerce industry, which remains the dominant driver of our top-line growth. We also managed to capture new opportunities from other industries, namely healthcare and pharmaceutical as well as retail and food and beverage. This has enabled us to further diversify our revenue mix, which is a core part of our commercial strategy to ensure we continue to grow sustainably through various market cycles.”
Aramex’s cross-border International Express increased by 29% to AED 715m and shipment volumes rose by 12% year-on-year and by 14% from Q2 2020. The majority of the growth has been coming from Asia and Europe origins into GCC markets. However, margins continue to be pressured because of Covid-19 induced higher operating costs.
The Domestic Express business grew by 29% to AED 350m and e-commerce volumes in core markets surged 71% over the period with particularly strong contribution from Saudi Arabia and the UAE, in addition to Australia.
Freight-Forwarding decreased by 2% to AED 275m, mainly because of the decline in demand from the oil and gas industry. However, this business line witnessed some good recovery in other industries such as retail and a considerable increase from the pharmaceutical and healthcare industries.
The Logistics & Supply Chain Solutions business rose by 6% to AED 94m. This business line has recovered from Q2 2020 as regional retailers have witnessed a recovery in their sales activities since the loosening of Covid-19 lockdown measures and is also benefitting from solid growth from the healthcare industry.
Source: Aramex
*$ = AED3.67 / € = AED4.33
