Aramex (DFM: ARMX), a leading global provider of comprehensive logistics and transportation solutions, today announced its Full Year Financial Results for year ended 31 December 2015.
Aramex’s 2015 Full Year Revenues reached AED 3,837 million, up by 5% compared to AED 3,643 million in 2014. Q4 Revenues increased by 5% to AED 1,003 million, compared to AED 957 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% to AED 311 million, compared to AED 318 million in 2014. Q4 Net Profits reached AED 57.6 million, which represent a decrease by 36%, compared to AED 89.4 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 AED 104 million, which represents 16% growth over the same quarter last year. Also, Full Year Net Profits would have been approximately AED 358 million for the year 2015, which represents 12% growth over year 2014.
Commenting on the results, Hussein Hachem, Aramex Chief Executive Officer said: “We had another strong year and we are very happy with our 2015 results. Despite global economic uncertainty, substantial drop in oil prices and currency fluctuations, our 2015 performance was very solid in revenue growth, primarily in international and domestic express, led by continued expansion of our e-commerce 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. ”
“Net profits were affected by a one-time provision for our incentive scheme for key Aramex employees. Excluding the impact of this provision, our Net Profits were strong - witnessing 12% growth from 2014’s Full Year Financial Results - and are reflective of an ever increasingly, fundamentally robust business model and approach to the way we do business worldwide. We are excited about the positive growth trajectory we are on and will carry this momentum into 2016,” Hussein added.
Aramex’s International Express business recorded a strong performance in Q4 with revenues growing 14% to AED 382 million. Revenues were driven primarily by robust e-commerce growth in Aramex’s core and growth markets supported by the solid performance in the sector in Europe, the U.S and the Middle East.
The Domestic Express business saw revenues of AED 211 million in Q4, an increase of 4% 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% in Q4 2015 compared to same quarter last year.
Aramex’s Logistics and Supply Chain Management decreased by 2% in Q4 reading AED 52 million, with Full Year Revenues growing 4% to AED 206 million.
Freight Q4 revenues decreased slightly by 5% to AED 298 million, and Full Year Revenues down 3% to AED 1,203 million. Despite growth in volumes, Freight revenues were affected by lower selling rates driven by lower oil prices and global currencies fluctuations.
Commenting on Aramex’s outlook for 2016, Hussein Hachem said: “I am delighted to say that 2015’s fiscal performance prepared us well to execute our 2016 plans. 2015 was an important year for us to lay the groundwork for launching major initiatives which we are going to activate in 2016. While we continue to closely monitor global oil prices and currencies, we feel optimistic towards the outlook of 2016. We have already had a very exciting start by announcing the full buyout of Fastway Couriers’ operations in New Zealand and Australia. This was our biggest acquisition to date and will play a major role in expanding our reach and services to more customers worldwide. We will continue to look for future acquisitions in our key markets while exploring more ways to enhance our e-commerce platform through improved transit times due to the continued boom in cross-border e-commerce. We will soon be launching our new innovative app that will give the power to customers through higher visibility, payment flexibility, more locations delivery options and a rating system. We will also be unveiling soon a new Rapid Scaling Up model based on partnerships in cities around the world giving us access to delivery partners thanks to our innovation and technology.
We are committed to becoming a technology-based enterprise and will continue to leverage innovative technologies to enhance our business model and maintain our position as a dynamic and disruptive global logistics player. We have a busy year ahead and all of these activities will help achieve for growth in 2016 and beyond,” Concluded Hachem.
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