Profit up, but revenue down at Aramex

Ghandour: Trend towards logistics outsourcing its benefitting Aramex.

Aramex has reported a year on year increase in net profit and a decline in revenue for its second quarter.

Net profit touched AED 50 million for the quarter ending June 30, a rise of 30% year on year. Revenue, however, fell 10% year on year to AED 485 million.

“While the global economic slowdown continued to affect our revenue growth in this period, we maintained focus on operational cost efficiency and customisation capabilities to better adapt to customers’ changing business needs,” said Fadi Ghandour, founder and CEO of Aramex.

“This has enabled us to further improve our gross profit margins, control costs, and report excellent net income growth.

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“We continue to see, and benefit from, an accelerated trend among companies across the Gulf region towards outsourcing logistics services, driven by the need to restructure operational costs in the wake of current economic challenges.”

In a statement, the company attributed the improvement in net profits to its, ‘asset-light business model and prudent cost management programmes.’

Aramex’s net profit for the first half stands at AED 93.1 million, growth of 25% year on year. Revenue for the same period was AED 948.4 million, a drop of 8% year on year.