To sign up for Analytiqa's free weekly newsletter, please enter your details below.
Analytiqa will not share this information with third parties.
Maintains position as a dynamic and disruptive global logistics player
Aramex has announced its full year financial results for year ended 31 December 2015. Full Year Revenues reached AED3,837.0 million, up by 5.0% compared to AED3,643.0 million in 2014. Q4 Revenues increased by 5.0% to AED1,003.0 million, compared to AED957.0 million in the corresponding period of 2014. Exposure to major currency fluctuations, primarily the Euro, South African Rand and Australian Dollar, had a 4.4% negative impact on full year revenues, which would have resulted in an increase of 9.4% in total annual revenues and 8.5% increase in Q4 revenues.
The Company’s 2015 Full Year Net Profits decreased by 2.0% to AED311.0 million, compared to AED318.0 million in 2014. Q4 Net Profits reached AED57.6 million, which represent a decrease by 36.0%, compared to AED89.4 million in Q4, 2014. This decrease is due to a one time provision to account for an employees’ incentive scheme in order to retain and reward talented and senior executives, in-line with international best practices. This scheme has been discussed, reviewed and approved by the Remuneration Committee of the Company. Excluding this scheme provision, Aramex’s Q4 2015 Net profit would have been approximately AED104.0 million, which represents 16.0% growth over the same quarter last year. Also, Full Year Net Profits would have been approximately AED358.0 million for the year 2015, which represents 12.0% growth over year 2014.
The Company’s performance was very solid in revenue growth, primarily in international and domestic express, led by continued expansion of its eCommerce business across key growth markets. Aramex has also achieved solid growth across its geographies, with the GCC remaining the largest contributor to revenues in 2015.
Aramex’s International Express business recorded a strong performance in Q4 with revenues growing 14.0% to AED382.0 million. Revenues were driven primarily by robust eCommerce growth in Aramex’s core and growth markets supported by the solid performance in the sector in Europe, the US and the Middle East.
The Domestic Express business saw revenues of AED211.0 million in Q4, an increase of 4.0% from Q4, 2014. This is due to increased demand for Aramex domestic services for both businesses and individuals in key markets. Excluding currencies fluctuations which mostly resulted in South Africa and Australia, Domestic Express revenues grew by 12.0% in Q4, 2015 compared to same quarter last year.
Aramex’s Logistics and Supply Chain Management revenues decreased by 2.0% in Q4, reaching AED52.0 million, with full year revenues growing 4.0% to AED206.0 million.
Freight Q4 revenues decreased slightly by 5.0% to AED298.0 million, and full year revenues down 3.0% to AED1,203.0 million. Despite growth in volumes, Freight revenues were affected by lower selling rates driven by lower oil prices and global currencies fluctuations.
2015 was an important year for Aramex to lay the groundwork for launching major initiatives in 2016. It has already announced the acquisition of Fastway Couriers’ operations in New Zealand and Australia, its biggest acquisition to date, which will play a major role in expanding reach and services to more customers worldwide. The Company will continue to look for future acquisitions in key markets while exploring more ways to enhance its eCommerce platform through improved transit times due to the continued boom in cross-border eCommerce. The Company will soon be launching a new innovative app that will give the power to customers through higher visibility, payment flexibility, more locations delivery options and a rating system. It will also be unveiling soon a new Rapid Scaling Up model based on partnerships in cities around the world giving it access to delivery partners.
Aramex is committed to becoming a technology-based enterprise and will continue to leverage innovative technologies to enhance its business model and maintain a position as a dynamic and disruptive global logistics player.