The Dubai logistics giant Aramex records a 15 percent fall in the net profits for the year 2021, resulting in Dh225.37 million compared to the profit of Dh266.65 million a year ago.
Although the net profits witnessed a drop, the total revenues improved by 10 percent, totaling Dh6.06 billion.
The profit drop, though, is being attributed to higher costs on the line-haul services from “continued pricing pressure” and higher operating costs. “The gradual reopening of the global economy in the second half of the year underpinned by the strong progress made by countries in implementing national vaccination campaigns and other related measures, spurred economic growth and improved business performance and customers confidence levels,” said Capt. Mohamed Juma Alshamsi, Chairman of Aramex.
“Our market-leading position and strong reputation have attracted an international peer, GeoPost, to become a strategic investor in Aramex. Their investment is a testament to the significant growth opportunities that Aramex is well-positioned to capture in the mid-to long term. We plan to continue exploring multiple synergistic opportunities and our focus on creating value for our shareholders and all our stakeholders.”
A French parcel services firm, GeoPost, holds 24.9 percent in the Dubai firm. And last week, AD Ports Group confirmed a 22 percent plus stake in Aramex.
Ecommerce deliveries hold up
In the final three months of 2021, the courier business was down 12 percent year-on-year to Dh1.0 billion. The decline is “partly attributed to a slowdown in both international and domestic express business compared to 2020”. It suggests that after the bumper volumes from e-commerce-related deliveries during the COVID-19 peak phase of 2020, last year’s numbers were relatively flat.
Despite such low numbers, Aramex’s courier business increased by 5 percent to Dh4.14 billion. Othman Aljeda, the CEO, commented that 2021 showcased Aramex’s capability to grow and capture opportunities for a faster market recovery by implementing a fully redesigned operating model.
