Net profits slide to $26.4mn at Aramex, hit by currency fluctuations and AMC Logistics investment
Aramex’s revenues increased by 4% to $312.5mn in the second quarter of 2017, but net profit fell by 23% to $26.4mn.
Revenue growth in Q2 2017 was driven by Asia, the US and Africa, said the company in its quarterly report. Revenues in other regions were affected by currency fluctuations, especially the Egyptian Pound.
The company said net profit growth in the second quarter of 2017 was hit by the one-time adjustment related to Aramex’s investment in AMC Logistics joint venture. Excluding the adjustment, second quarter 2017 net profits would have actually increased by 15%.
Hussein Hachem, CEO, said: “Despite the on-going global and regional economic uncertainty, we delivered strong results in Q2 2017.
“Our asset-light business model and use of innovative technologies to upgrade our operations enable us to successfully manage capacity through a variable cost model, both regionally and globally and maintain our position as the disruptive logistics player.
“Looking towards the second half of 2017, we are excited about our future prospects for growth, and will be actively identifying acquisitions and strategic partnerships to expand our global reach.”