Logistics
global e-commerce industry.
In 2016, Aramex and Australia Post
partnered to create AGS to serve as
an e-commerce delivery platform, with
a particular focus on connecting the
Australian e-commerce market with
sellers in Asia. Aramex currently owns
the majority of the joint venture, with a
60% stake and the remainder 40% are
held by Australia Post.
Upon completion, the divestment will not
have any impact on Aramex revenues
since the JV was only accounted for on
equity basis. However, it will incur a one-
off write-off of US $13 million for Aramex,
which will be reflected in the Company’s
Q4 2018 financial results.
Commenting on the sale, Bashar Obeid,
Chief Executive Officer of Aramex said:
“We have mutually agreed with our
trusted partners, Australia Post, to sell
to them our full 60% stake in AGS. The
divestment will not affect our e-commerce
growth strategy. The global e-commerce
20 | JANUARY 2019
market continues to grow at a strong
rate, transforming our industry and
presenting huge opportunities for us
to expand our business in our target
markets. We will continue to tap into
this growth by enhancing our last mile
delivery solutions and further improving
service levels through investments in
technology and digitization.”
One of the key contributors to the
Company’s strong Q3 2018 results was
the boom in e-commerce. In the third
quarter the Company had reported
revenue for the three-month period
ended September 30th 2018 of AED
1,239 million, up 8% year-on-year and
a net profit of AED 113 million, a 38%
jump from Q3 2017.