Domestic Express e-commerce volumes in core markets rose 133% in Q2-2020
Aramex recently announced its financial results Q2-2020 and H1-2020 ended 30 June 2020.
Aramex’s Q2-2020 revenues grew by 4% to AED 1,332mn, compared to AED 1,279mn in Q2-2019 driven mainly by a surge in e-commerce activities resulting from increased online shopping during Covid-19 related lockdowns.
Aramex’s Revenues in the H1-2020 increased by 1% to AED 2,528mn compared to AED 2,512mn in the corresponding period of 2019.
Net profit in Q2 declined 23% to AED 94.4mn, compared to AED 123mn in Q2-2019. Net profit was negatively impacted by the rise in unforeseen costs prompted by the global onslaught of the pandemic. Aramex’s net profit in the H1-2020 fell by 30% to AED 162mn, compared to AED 231mn in H1-2019.
“As a business, we are now operating in a higher cost environment which is adding pressure to our profitability margins. While some factors pushing costs higher may dissipate or normalize over time, such as sanitization costs, others may adjust higher for an extended period, such as line haul costs,” remarked Bashar Obeid, CEO, Aramex.
“Over the period, we remained focused on efficient and innovative problem solving to resolve several operational challenges while managing a 26% growth in overall Express both international and domestic shipment volumes,” commented Othman Aljeda, Acting COO and Regional CEO for Aramex in Europe, North America and Asia.
The Logistics & Supply Chain solutions business was unchanged year-on-year at AED 85mn. However, over the H1 period, it was up 6%, mainly owed to the increase in demand for those services from traditional retailers expanding into online sales to service changing customer behaviour.
