Aramex, the provider of comprehensive transportation and logistics solutions, today announced its financial results for the second and first half of this year. The results showed Aramex revenue growth during the second quarter of 2020 by 4% to reach 1332 million dirhams, compared to 1279 million in the second quarter 2019. The increase is mainly due to the strong growth in e-commerce activities due to the increase in online shopping rates during the closing period associated with the virus pandemic The new Corona “Covid 19”. Aramex revenue increased during the first half of 2020 by 1% to reach 2528 million dirhams, compared to 2512 million during the same period in 2019.
Net profit fell during the second quarter by 23% to 94.4 million dirhams, compared to 123 million dirhams during the second quarter 2019. The net profit was negatively affected by the unexpected costs that resulted from the repercussions of the global crisis imposed by the pandemic of “Covid 19”, which cast a shadow on Profit margins in the Aramex international express and freight services sectors.
The costs of local express services increased due to the expansion of operations in the main markets where the company is present in response to the steady increase in the number of shipments. As part of Aramex’s commitment to provide basic services to its customers in a very safe manner, the company has witnessed an increase in costs related to personal protection equipment for its employees and other health and safety measures such as warehouse sterilization, parcel sorting facilities and vehicle fleet. During this period, the company adopted a set of measures to contain costs, and most of them are expected to remain in effect during the second half of this year in light of expectations of continued uncertainty and instability in the market and concerns about the possibility of new waves of the “Covid 19” pandemic. Net profit for the first half of 2020 decreased by 30% to reach AED 162 million, compared to AED 231 million during the first half of 2019.
Bashar Obaid, CEO of Aramex, said: “Given the difficult circumstances and the exceptional phase that we are living in today, we are pleased with the results of the second quarter and are also proud of the heroic performance of our employees and the strong growth we have achieved in the total number of shipments within express transportation services.”
Othman Al-Jada, Acting CEO of Operations and Regional CEO of Aramex in Europe, North America and Asia, said: “During the recent period, our priorities have focused on facing difficulties and providing solutions in an effective and innovative way that addresses many operational challenges while helping us manage the growth of the total number of shipments by 26% in domestic and international express transport services. While we are witnessing the return of operational environment conditions in some markets to a normal position before the Covid 19 pandemic, we are still taking a cautious approach and focus on efficiently addressing operational challenges to ensure that the level of service our customers have been entrusted with is maintained. ”
And about Aramex’s expectations for the second half of 2020, Bashar Obaid said: We are not completely out of the crisis yet and there is still a lot of uncertainty about the chances of a global economic recovery, so it is too early to determine any clear trends or changes in consumer behavior. Nevertheless, we are optimistic that the growth of e-commerce will keep the pace of shipments higher and expect strong growth in the healthcare sector, albeit at a somewhat slow pace. Based on these factors, we will continue our efforts to distribute resources in order to expand our delivery services to the final destination and modernize our infrastructure, including our warehouse and fleet of vehicles.
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