Aramex Delivers Soaring Profits in First Quarter 2024

Aramex, a leading global provider of logistics and transportation solutions, announced impressive financial results for the first quarter (Q1) of 2024. The company's net profit nearly doubled compared to the same period last year, reaching AED 47 million (approximately USD 12. 8 million). This significant growth marks Aramex's second consecutive quarter of strong performance, solidifying their positive trajectory.

The robust financial performance was driven by an 8% year-on-year increase in group revenues. This growth reflects the strength of Aramex's diverse portfolio, with all product lines contributing positively. Notably, the International Express segment experienced exceptional growth, boasting a 44% increase in volumes and a 14% revenue surge compared to Q1 2023. This upswing can be attributed to both new customer acquisitions and seasonal factors associated with Ramadan.

Aramex's financial health extends beyond just net profit. They reported a 10% increase in group gross profit compared to Q1 2023, reaching AED 395 million. This translates to a 70 basis point improvement in the gross profit margin, demonstrating the company's efficiency in managing costs. Earnings Before Interest and Taxes (EBIT) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also displayed impressive growth, expanding by 47% and 18% year-on-year respectively.

Othman Aljeda, Chief Executive Officer of Aramex, expressed optimism about the company's future prospects. He highlighted the commitment to continuous operational streamlining and cost-effectiveness, which has resulted in improved margins across the board. Aljeda also emphasized Aramex's strong balance sheet position, with a net debt-to-EBITDA ratio excluding IFRS 16 of a healthy 0. 8x and a robust cash balance of AED 571 million as of March 31, 2024. These factors, combined with improved working capital management and record low Day Sales Outstanding (DSOs), paint a promising picture for Aramex's financial stability.

Aramex's strong Q1 performance is a testament to the company's ability to navigate the global economic landscape and capitalize on growth opportunities. The diversified portfolio, focus on operational efficiency, and commitment to customer acquisition position Aramex for continued success in the logistics and transportation sector.

Previous Article Next Article