Dubai: Aramex, a logistics and transportation firm, on Sunday announced a seven per cent increase in first-quarter revenues to Dh1.10 billion compared to Dh1.03 billion a year ago.
But its net profits decreased by 5 per cent to Dh91.8 million, down from Dh96.9 million a year ago, due to an increase in value of the provision related to the company’s incentive scheme.
Not accounting for this provision, the profit would have been Dh105.1 million, an 8.5 per cent year-on-year increase.
Hussain Hachem, Aramex CEO, said that the strong revenue performance was driven by growth across Asia-Pacific. Revenues in other regions were affected by currency fluctuations, especially the Egyptian pound, which otherwise would have grown by 12 per cent.
“International express was the key driver of growth and will continue to drive Aramex’s business strategy and expansion plans. While we are cautious with regards to the GCC outlook, we are confident about carrying the same positive momentum into the second quarter of 2017.
Domestic express business
“Looking further ahead, we will continue to enhance our business model through innovative technologies, with the aim to become a technology-based enterprise and maintain our position as a dynamic and disruptive global logistics player,” he said in a statement.
International express recorded double-digit growth, driven primarily by the robust performance of cross border e-commerce, and continues to be the main driver of growth for Aramex.
The domestic express business witnessed an increase compared to last year’s performance, with Asia-Pacific contributing significantly to this growth while freight growth witnessed a slight rebound in first quarter but was affected negatively by currency fluctuations.
