Strong top line growth driven by the increase in cross border e-commerce activities
Aramex recently announced its financial results for the first quarter ending 31 March 2021.
In Q1-2021, revenues jumped 24% to AED 1,425mn (US$ 388mn), compared to AED 1,152mn (US$ 313.62mn) in Q1-2020 driven by increased demand for Express business including cross border e-commerce and last mile services.
Operating profit declined 20% to AED 79mn (US$ 21.06mn) compared to AED 100mn (US$ 27.22mn) in Q1-2020, while Operating margins fell to 5.6% compared to 8.6% in the same period last year. Q1-2021 EBITDA margins came in at 11.9%, down from 16.0% in Q1-2020.
The decline in operating profit and EBITDA was impacted by an increase in line haul costs on the back of global capacity constraints caused by supply chain disruptions the industry continues to face due to the pandemic.
Subsequently, net profit for the period decreased 32% to AED 46mn (US$ 12.52mn) compared to AED 67mn (US$ 18.24mn) in Q1-2020.
“We have also streamlined processes and accelerated roll out of technology-enabled operating solutions to increase efficiencies, reduce delivery times, and further improve service quality to our customers,” remarked Thomas Kipp, COO, Aramex.
