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DUBAI / WAM
Aramex today announced its financial results for the first quarter ending 31st March 2024, with net profit nearly doubling, reaching AED47 million, marking two consecutive quarters of strong performance. The net profit margin improved to 3%.
In a statement on Friday, the company reported an 8% year-on-year (YoY) increase in group revenues, with strong contributions from all product lines reflecting the strength of its diverse portfolio.
International Express emerged as a key driver, delivering remarkable volume growth of 44% in Q1 this year compared to the same period in 2023, leading to a revenue increase of 14% YoY.
Domestic Express and Freight Forwarding were resilient, with revenue growing by 5% and 3% YoY, respectively. Logistics and Supply Chain Solutions maintained a stable performance in Q1 2024 compared to the same period last year, despite the challenges associated with currency devaluations in Egypt, which negatively impacted revenues.
Effective management of the Group’s Selling, General, and Administrative Expenses (SG&A) saw a modest 4% YoY increase in Q1 this year, primarily attributed to increased selling expenses, as well as annual employee compensation adjustments.
Aramex maintained a strong balance sheet position with Net Debt-to-EBITDA excl. IFRS16 ratio of 0.8x and a healthy cash balance of AED571 million as of 31 March 2024. The Company also improved its working capital and delivered record-low DSOs during the quarter.
Othman Aljeda, CEO of Aramex, said, “Our International Express delivered a 44% increase in volumes YoY in Q1 2024, while Domestic Express delivered a 7% increase, with both driven by new customer wins, as well as seasonality during Ramadan. Our freight forwarding product grew double-digit volumes across land, sea and air while our Logistics and Warehousing product continued to support customers with 3PL and 4PL activities ensuring efficient logistics and fulfillment of goods in key markets.
“During the first quarter of the year, we injected significant volumes into our network while maintaining high service levels. I am proud of my team’s performance and commend the hard work of every Aramexian, for their dedication and capability to handle significant volume growth and heightened consumer activity, seamlessly delivering the level of service our customers value.”
He added that the company’s ongoing investment in automation and operational optimisation remains a core advantage and that the network is agile and responsive to customer needs and market dynamics.
“Furthermore, our focus on technologies, such as last-mile route optimization, is yielding results, significantly enhancing operational efficiency. This strategic approach enables us to accommodate increased growth effectively,” he noted.
Aljeda continued, “Looking ahead, we anticipate Q2 and Q3 2024 to continue to deliver volume growth YoY, albeit at a softer rate compared to the levels seen during the peak seasons in Q1 2024 and in Q4 2023 due to seasonality. We will continue to manage our cost base and SG&A to ensure profitable growth. Our focus remains on working towards our long-term ambition, which involves delivering quality service and enhancing our operational efficiency to meet the evolving needs of all our stakeholders.”