Aramex has announced its financial results for the Second Quarter and First Half of 2017.
Aramex's Q2 2017 Revenues grew by 4% to AED 1,148 million, compared to AED 1,105 million in Q2 2016. Net Profits in Q2 2017 decreased by 23% to AED 97 million, compared to AED 125.7 million in the corresponding period of the previous year.
2017 Half Year Revenues increased, year-on-year, to AED 2,254 million, up by 6%, compared to AED 2,134 million in the first half of 2016. Net Profits in the same period of 2017 decreased to AED 188.7 million, down from AED 222.5 million in the first half of 2016, a year-on-year decrease of 15%.
Net Profit growth in Q2 2017 was negatively impacted by the one-time fair value adjustment related to Aramex's investment in AMC Logistics joint venture in Egypt in Q2 2016. Excluding this adjustment, Q2 2017 Net Profits would have grown by 15%. Furthermore, the company's Revenue growth in Q2 and the First Half 2017 was also affected by currency fluctuations, especially the Egyptian Pound, which otherwise would have grown by 8% and 10% respectively.
"Despite the ongoing global and regional economic uncertainty, we delivered strong results in Q2 2017. Our asset-light business model and use of innovative technologies to upgrade our operations enable us to successfully manage capacity through a variable cost model, both regionally and globally and maintain our position as the disruptive logistics player. Looking towards the second half of 2017, we are excited about our future prospects for growth, and will be actively identifying acquisitions and strategic partnerships to expand our global reach," says Hussein Hachem, Aramex CEO.
While the performance in GCC in Q2 2017 was relatively slow due to the holiday season and reduced number of working days, as well as the ongoing economic uncertainty, Aramex revenues grew at a healthy rate across Asia and the Asia-Pacific, the U.S and Africa.
Aramex's Express services recorded double-digit growth in Q2 2017 and continue to be the main contributor to the company's financial performance. Cross-border e-commerce in particular was the key driver for revenue growth especially in Asia-Pacific where customer demand for package delivery services across the region continues to rise.
Leveraging innovative technologies to support Aramex's efforts towards becoming a technology-based enterprise will continue to be a key focus for the business in the remainder of 2017. The company remains committed to upgrading business operations and optimizing last-mile delivery solutions to further enhance overall customer experience.