One-off gains boost net profit of Dubai’s Aramex in third quarter

Dubai-listed company Aramex reported on Sunday that its net profit surged 47 percent year on year in the third quarter of 2021.

Dubai-listed company Aramex reported on Sunday that its net profit surged 47 percent year on year in the third quarter of 2021.

The courier’s profit, which includes oneoff gains, such as the proceeds made from the sale of InfoFort and insurance from the Beirut Port blast, reached 67.8 million dirhams ($18.4 million). However, excluding the one-off events, normalised net profit for the three-month period declined by 70 percent to 29.6 million dirhams, compared to 99 million dirhams for the same period last year, the company said in a statement to the Dubai Financial Market (DFM). Operating profit fell 19 percent to 68 million dirhams, while operating profit margin dropped by one percent. “Excluding the one-off events, Q3 2021 operating profit fell 55 percent,” the statement added. For the nine-month period ending September 30, the courier and logistics operator saw net profit decline by 14 percent to 179 million dirhams.

Othman Aljeda, Group Chief Executive Officer of Aramex, said the company has an almost complete return to pre-COVID operating environment. He said they are seeing very strong growth for their business in Saudi Arabia, where they will continue to invest in expanding and ramping up operations. “We are also leveraging data analytics and [artificial intelligence] to help us better prepare, plan and optimise our operations. This will be especially beneficial as we approach the very busy peak shopping season. As for line haul costs, while they remain above pre-COVID levels, they have dropped from their 2020 peak and the capacity issues are subsiding, which translates into [a] slight improvement in margin and reduced delays in cross-border activity over the coming periods.” Aramex, in which Abu Dhabi-backed investor ADQ last year bought a 22.25 percent stake, recently re-organised its operating model and appointed a chief strategy officer to lead its international expansion, as well as merger and acquisition plans.

Aramex Emirates Head Office Jebel Ali

WE ARE ALSO LEVERAGING DATA ANALYTICS AND ARTIFICIAL INTELLIGENCE TO HELP US BETTER PREPARE, PLAN AND OPTIMISE OUR OPERATIONS