MENA Q3 earnings are rolling in! We’ll let the winner go first: Dubai’s very own Aramex. The logistics and transportation solutions company announced yesterday a Q3 net profit increase of 47% year-over-year — thanks to growth in its domestic courier services as well as an expansion in its operations in Saudi Arabia.
Abu Dhabi’s YahSat wasn’t so lucky. The satellite company announced a year-over-year decrease in net profit of 37.8%. The Mubadala subsidiary (which went public on the ADX in July) isn’t discouraged, though, stating it believes it’s positioned well for future growth due to the commercial and government contracts it landed this past quarter.
Saudi Arabia’s Axa Cooperative Insurance and Middle East Healthcare Co also had disappointing news to share, reporting declines in net profit of 18% and 51% respectively. Axa Cooperative blamed a 7% fall in written premiums, while Middle East Healthcare cited rising costs and administrative expenses.
why it matters
Aramex is capitalizing well on the surge in demand it saw last year driven by consumer trends towards online shopping. While costs have risen in scaling to meet the demand, CEO Othman Aljeda stated the company's "new redesigned operating model is already starting to reflect positively on our performance."