Dubai: Aramex posted a 17 per cent rise in fourth quarter net profit on the back of growth in its domestic and international express businesses, plus eCommerce.

Net profit reached Dh89.4 million in the fourth quarter, from Dh76.4 million in the same period in 2013. It rose by 15 per cent for the full year to Dh318.4 million from Dh278 million in the previous year.

Revenue for the quarter touched Dh959 million, up 13 per cent from Dh850 million achieved in the same period a year ago. It grew by 10 per cent year-on-year to Dh3.65 billion.

“Our performance was driven by solid revenue growth primarily in international and domestic express, as well as the continued expansion of our innovative e-commerce platform across key growth markets,” Hussein Hachem, chief executive of Dubai-listed Aramex, said in a statement on Thursday.

At a press conference in Dubai on Thursday, he said that the transportation and logistics company’s profit in 2015 is expected to rise by 10 per cent, driven by its “expanded operations in South Africa and Australia, eCommerce and domestic express [business].”

The company acquired Australian courier company Mail Call Couriers for 33 million Australian dollars (Dh94.6 million) and South Africa-based retailer PostNet for $16.5 million (Dh60.6 million) in 2014.

Revenue from Aramex’s international express business jumped 18 per cent in the fourth quarter to Dh335 million over the corresponding period in 2013, mainly driven by robust e-commerce growth in its core and growth markets. This growth is supported by the solid performance in the sector in Europe and the US, the company said.

“We see a lot of demand on eCommerce flying out of Europe and the US to global markets. We are seeing the European and US retailers looking to expand into growth markets,” Hachem said.

The domestic express business, meanwhile, recorded a revenue of Dh203 million in the fourth quarter, up 26 per cent from the same time in 2013, due to increased demand from Aramex’s domestic services for businesses and individuals in key markets, plus the acquisition of Australian courier company, Mail Call Couriers, in 2014.

The DFM (Dubai Financial Market)-listed company’s logistics and supply chain management business saw fourth quarter revenue grow by 19 per cent compared with the same period in 2013 to Dh54 million, and full year revenue by 17 per cent to Dh198 million from 2013.

Lower delivery charges

Further, fourth-quarter freight revenue grew by 4 per cent to Dh315 million from the corresponding time in 2013, while full year revenue edged up 1 per cent to Dh1.24 billion.

Given the declining oil prices, Hachem expects a 5-10 per cent reduction in freight costs now compared with December 2014.

Global benchmark Brent crude has lost more than half of its value since June 2014, tumbling to around $50 per barrel.

Aramex’s customers are already enjoying the benefits of the drop in oil prices, Hachem said. Delivery charges have dropped by 7-8 per cent between November 2014 and January 2015 compared with October.

Aramex’s shares closed up 2.17 per cent to Dh3.29 on DFM on Thursday.