Aramex's profits fell by 32%, with AED 46 million in the first quarter of 2021, compared to AED 67 million during the same period last year.
According to Arab Net, the company returned to aggravate the shortage of global transport capabilities during the first quarter of 2021 as the transfer and distribution of Kovid-19 vaccines in the world.
Their revenues during the first quarter of 2021 rose 24% to AED 1.425, compared to AED 1.152 billion during the first quarter of 2020.
This is due to high demand for rapid transport services, including cross-border e-commerce transactions and delivery services to the final destination.
Operating profits in the first quarter of this year fell 2021 by 20% to AED 79 million compared to AED 100 million in the first quarter of 2020, while operating profit margins fell to 5.6% compared to 8.6% during the same period the past. The margin of profits before the calculation, taxes, depreciation and debt consumption during the first quarter of this year were 11.9% compared to 16.0% during the first quarter of 2020.
This decline in operational profits and profits before accounting for taxes, taxes, depreciation and debt consumption are driven by increasing transport costs on the back of pressure from the global transport sector because of the unrest of the supply chain, which remained shaded on the transport and logistics industry as a result of the continuation of the global pandemic and its effects.
Aramex maintained its strong public budget, a negative net of AED 353 million, indicating a strong cash balance (as at 31 March 2021).
The strong financial position would enable the company to continue to invest in expansion and launch digital solutions and take advantage of future opportunities, including acquisitions that promote shareholders' value, the company said in a statement.
