An online shopping boost for its international express and domestic express products saw Dubai-based Aramex’s second quarter net profits increase by 15% to AED92.6m.
The logistics group, which has secured funds for potential takeover targets, saw its half year 2015 revenues increase year-on-year to AED1.9bn, up 7% compared to the corresponding period of 2014.
“Significant revenue growth was recorded from both the International Express and Domestic Express businesses due to a continued increase in demand for global online shopping services particularly in the GCC, Europe and North America,” said Aramex.
Adding: “Australia’s MailCall, acquired in 2014, contributed positively to domestic express as did an increase in demand for domestic services for both businesses and individuals in key markets, specifically Egypt, KSA and India.”
Growth in the freight business was "negatively impacted" by the recent drop in global oil prices and currency fluctuations, while Logistics recorded a particularly strong performance mostly driven by growth in core GCC markets and South Africa.
Commenting on the results, Aramex chief executive Hussein Hachem said: “While we’ve had a strong double-digit net income, our revenues would have reached 10% had we not been faced with weak global currencies.
“We are generally pleased with our business performance and particularly with our global e-commerce business solutions.”
Regarding Aramex’s outlook for the remainder of 2015, Hussein Hachem stated: “We will also continue to seek potential acquisitions in the second half of 2015, for companies sharing the same synergy with us, and for that we have made available of a new line of credit from a consortium of banks in the UAE.
“While we remain confident about extending our growth momentum and performance into the remainder of 2015, the impact of global oil prices and weak major currencies continue to be areas we will carefully monitor moving forward.”
