Aramex, the Dubai-listed courier company, reported a 38 per cent increase in third-quarter net profit thanks to growth in its e-commerce business, beating one analyst’s estimate.
Net profit in the three months to September 30 rose to Dh113 million, the company said.
Sico Bank in Bahrain had forecast a net profit of Dh100m for the period.
Revenue grew eight per cent year-on-year to Dh1.24 billion from a year earlier period.
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“The boom in global e-commerce continues to fuel the growth of our top line, with our International Express business growing by an impressive 18 per cent for the period,” said Bashar Obeid, the chief executive of Aramex.
“Today, our internal processes are running more efficiently, operationally we have become leaner, and we have upgraded our service level to our customers. Ultimately, this has helped create efficiencies, improved our cost management, thus supporting the expansion in our bottom line.”
The company’s international express business grew due to expansion in cross border e-commerce across the regions the company operates, in particular in Asia and Turkey.
"International Express segment performance remained impressive with segment revenues up by 18 per cent year-on-year, contributing to the better than forecast revenue and earnings growth," said Ayub Ansari, an analyst with Sico Bahrain.
The domestic express business dropped three per cent from a year earlier due to “downscaling of operations in India as part of restructuring efforts, in addition to currency exchange fluctuations, mainly the Australian dollar”, Aramex said.
The company's freight-forwarding business grew two per cent as it continued to diversify its source of revenue across geographies and sectors, including oil and gas, healthcare and pharmaceuticals, aerospace and retail.
Aramex's logistics and supply chain management business increased by 14 per cent due to strong demand on warehousing and other services in the third quarter mainly in the UAE, Singapore and Africa.
“I am also very optimistic about the growth in the global e-commerce business and will continue to focus efforts on optimal means to capture those rising and evolving opportunities," said Mr Obeid. "Accelerating the growth of our B2B and Freight-Forwarding capabilities across the network remains a key focus area for us for the remainder of the year and beyond.”
