Aramex net profit grows

30 January 2017

Growth achieved despite general economic slowdown

Dubai-listed logistics firm Aramex reported a 37 per cent increase in net profit year-on-year, which amounted to AED 426.6m ($116.1m).

The net profit for 2016 was achieved on the back of AED4.3bn in full year revenue, which was 16 per cent higher compared to revenue in 2015.

The company’s financial performance is considered impressive given the global economic uncertainty and general slowdown in the GCC region.

The firm’s success in 2016 is mainly attributed to its asset-light business model, which enabled the firm to respond quickly to volatility and switch its focus to innovation and technology, according to Hussein Hachem, Aramex CEO.

“We will continue to leverage this strategy… to develop our global express solutions to serve the growing demand for our last-mile solutions across all our markets,” Hachem said in a statement.

The executive indicated that they are approaching 2017 with similar strategy and confidence although the global economic uncertainties means they will also remain cautious in their outlook.

Aramex acquired New Zealand’s Fastway Limited and formed a joint venture with Australia Post in 2016 to strengthen its presence in both countries.

Other initiatives included investing in delivery startup businesses globally to optimise its last-mile delivery solutions and in a new global addressing system, which allows Aramex to reach more customers in off-the-grid locations.

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