Revenue growth and margins continue to be impacted by e-commerce pricing pressure
Aramex has announced its financial results for the Fourth Quarter and Full Year ending 31 December 2019.
Full Year 2019 Revenue increased by 3% to AED 5,246mn (US$ 1.42bn), compared to AED 5,086mn (US$ 1.385bn) in FY 2018. FY-2019 net profit increased 1% to AED 497.4mn, compared to AED 492.6mn made in the year ago period.
Aramex’s Q4-2019 revenue grew by 3% to AED 1,463mn, compared to AED 1,425 mn in Q4-2018. Q4-2019 net profit dropped slightly by 1% to AED 152.5mn, compared to AED 154mn in the year ago period.
“We are pleased with our resilient performance despite headwinds emanating from regional and global economic challenges and pricing pressure on our core business prompted by shifting e-commerce dynamics,” remarked Bashar Obeid, Chief Executive Officer, Aramex.
Aramex’s Logistics and Supply Chain Management business grew by 15% to AED 97mn, compared to AED 84mn in Q4-2018, as a result of the growth of business across the company’s key markets, especially in the UAE and Saudi Arabia. The increase is driven by more traditional retailers choosing to tap omni-channel sales to compete with pure-play e-commerce companies.
“New investments included the establishment of new fulfillment facilities, increasing the number of Aramex PickUp and Drop Off (PUDO) points to be closer to end recipients, and introducing more automation in our operational and back office processes,” said Iyad Kamal, Chief Operating Officer, Aramex.
“We will continue to invest in latest technologies that allow us to accelerate our digital transformation journey, improve service level to customers and realize higher efficiencies,” concluded Mohammed Sleeq, Chief Digital Officer, Aramex, commenting on the company’s digital transformation.
