Aramex's net profit fell 23% to 94.4 million dirhams in the second quarter of 2020 compared to 123 million dirhams in the second quarter of 2019. >
According to Arabia Net, revenue during the second quarter of 2020 increased by 4% to reach 1.332 million dirhams, compared to 1,279 million dirhams during the second quarter of the year 2019.
This rise is mainly due to the strong growth in e-commerce activities due to the increase in online shopping rates during the closing period associated with the emerging epidemic of the Corona Virus Covid-19. p>
Aramex revenue increased during the first half of 2020 by 1% to reach 2,528 million dirhams, compared to 2,512 million dirhams during the same period in 2019. >
Net profits were negatively affected by the unexpected costs that resulted from the repercussions of the global health crisis imposed by the Covid-19 pandemic, including obstructing international operations due to the closure of borders and the increase in The costs of transportation paths, which have cast a shadow on profit margins in the international express and freight services sectors of Aramex.
On the other hand, the costs of local express services increased due to the expansion of operations in the main markets in which the company is located in response to the steady increase in the number of shipments. As part of Aramex’s commitment to provide basic services to its customers in a very safe manner, the company has witnessed an increase in costs related to personal protection equipment for its employees and other health and safety measures such as warehouse sterilization, parcel sorting facilities and vehicle fleet.
During this period, the company adopted a set of measures to contain costs and it is expected that most of them will remain in effect during the second half of the current year in light of expectations of continued uncertainty and instability In the market and concerns about the possibility of new waves of the Covid-19 pandemic. Net profit decreased during the first half of the year 2020 by 30% to reach AED 162 million, compared to AED 231 million during the first half of the year 2019.
Revenue from international express services from Aramex decreased by 1% to reach 582 million dirhams, and the number of shipments decreased by 4%. However, Shop & Ship, one of the most prominent pillars of these services, performed well during the second quarter, especially from the United States of America.
The profitability margins of international express services are still experiencing pressures not only as a result of costs associated with the Covid-19 pandemic, but also due to pricing pressures in the form of ...
