Aramex, the Jordan-based, Dubai-listed International express and logistics firm has reported a record revenue growth, with a 10% year-on-year revenue increase in 2014 to AED 3.65bn in the full year. Net profits grew 15% compared to the year before, to AED 318.4m.
In a statement, the company said its year’s performance was boosted by a “robust” fourth quarter when revenue was up 13% year-on-year, to AED 959m, and net profits rose 17% compared to 2013’s
final quarter, to AED 76.4m.
e-Commerce boosts revenues
Aramex’s international express business recorded revenues growing 18% to AED 335 million in 4Q. Revenues were driven primarily by, what was described as "robust e-commerce growth" in its core and growth markets supported by the solid performance in the sector in both Europe and the U.S. The company expects significant express opportunities in these markets.
The domestic express business saw revenues of AED 203 million in Q4, an increase of 26% from Q4 last year. This is due to increased demand for Aramex domestic services for both businesses and individuals in key markets. A significant contributor to this growth was the recent acquisition of Australia-based Mail Call Couriers.
Aramex’s logistics and supply chain management business also performed strongly. Revenues in Q4 grew 19% to AED 54 million, with full year revenues growing 17% to AED 198 million, driven by increased demand for retail and oil and gas services.
Better Freight performance expected
Freight Q4 revenues increased slightly by 4% to AED 315 million and full year revenues were up 1% to AED 1,247 million. However, Aramex expects to see an improvement in freight performance in 2015 due to the recent decline in oil prices and increase in trade, which may encourage an economic rebound in its trading routes across Asia, Africa and Europe.
In 2014, Aramex expanded its network with a number of franchise agreements, joint ventures and acquisitions across Africa, South East Asia and Australia including InPost, Mail Call Couriers, Leo Global Logistics and PostNet South Africa with franchises in various countries across Sub Sahara Africa.
Aggressive expansion strategy
Commenting on the company's outlook for 2015, Aramex chief executive officer, Hussein Hachem said: “We are very confident about extending our growth momentum and strong performance into 2015.”
He went on to say that “our asset light model will remain a key factor for Aramex’s business expansion supported by our strategic investments in innovative and transformational technologies.”
Finally, the company’s helmsman emphasized that Aramex intends to continue “our aggressive acquisition strategy which will set the pace for our growth in 2015, supporting the expansion of global connectivity by deepening trade links between high-growth markets.”
Nol van Fenema