Aramex has announced its financial results for the third quarter ended 30th September 2018.
Aramex’s Q3 2018 net profit surged by 38% to AED 113 million, compared to AED 82 million in Q3 2017.
Net profit for the nine-month period ending September 30th, increased by 25% to AED 339 million compared to AED 270 million in the prior year period.
Revenue for the quarter rose by 8% to AED 1,239 million, compared to AED 1,143 million in Q3 2017. Revenue for the nine-month period ending September 30th also increased by 8% to AED 3,661 million, compared to AED 3,397 million in the corresponding period of 2017.
Commenting on the results, Bashar Obeid, Chief Executive Officer of Aramex, said: “We are thrilled to record another strong set of results this quarter. The boom in global e-commerce continues to fuel the growth of our top line, with our International Express business growing by an impressive 18% for the period.
“Furthermore, our 38% surge in net profit is a confirmation of the positive impact our strategic initiatives have been having since the beginning of this year.
“Today, our internal processes are running more efficiently, operationally we have become leaner, and we have upgraded our service level to our customers.
“Ultimately, this has helped create efficiencies, improved our cost management, thus supporting the expansion in our bottom line.”
Iyad Kamal, Chief Operating Officer at Aramex, added: “We continue to see the impact of operational changes and investments across the business quarter by quarter and are proud of the progress we have achieved.
“Investment in technology and digital transformation forms the cornerstone of our strategy, and we have focused heavily on these areas because we know that they are key to delivering our customers the transparency, visibility and flexibility that they demand.”
In Q3 2018, Aramex's International Express segment witnessed strong double-digit growth, up by 18% to AED 543 million compared to Q3 2017.
This solid performance was a result of the growth in international cross-border e-commerce across all regions, most notably from Asia and Turkey.
The Domestic Express business dropped slightly, down 3% to AED 254 million in Q3 2018, compared to Q3 2017.
Despite solid growth across most of Aramex’s core markets, quarterly performance was impacted by the downscaling of operations in India as part of restructuring efforts, in addition to currency exchange fluctuations, mainly the Australian dollar.
Aramex's Freight-Forwarding business remained stable, rising by 2% to AED 292 million, as the company focused on diversifying across different geographies and strategic sector verticals, including Oil and Gas, Healthcare and Pharmaceuticals, Aerospace, and Retail.
The company’s Logistics and Supply Chain Management business witnessed double-digit growth of 14%, to AED 76 million due to the strong demand on Aramex’s warehousing and other value-added services in Q3 2018, most notable in the UAE, Singapore and Africa.
Read More: Aramex Net Profit up by 13% y-o-y in Q1 2018