Aramex Delivers Double-Digit Topline Performance for FY 2024, Driven by Consistent Volume Growth Across Key Products

Al Bawaba

12-02-2025

Aramex (DFM: ARMX) a leading global provider of comprehensive logistics and transportation solutions, today announced its audited financial results for the Fourth Quarter ('Q4'') and Full Year ('FY'') ending 31 December 2024.
In Thousands of UAE Dirhams
Q4 2024
Q4 2023
% Change (YoY)
FY
2024
FY
2023
% Change (YoY)
Revenues
1,695,132
1,524,009
11%
6,324,444
5,694,022
11%
Gross Profit
Gross Profit Margin
398,609
23.5%
388,727
25.5%
3%
1,512,203
23.9%
1,426,929
25.1%
6%
EBIT
EBIT Margin
89,186
5.3%
106,191
7.0%
(16%)
296,675
4.7%
266,661
4.7%
11%
EBITDA
EBITDA Margin
177,431
10.5%
197,409
13.0%
(10%)
650,304
10.3%
627,732
11.0%
4%
Net Profit
Net Profit Margin
65,667
3.9%
76,787
5.0%
(14%)
141,811
2.2%
129,297
2.3%
10%
Financial Performance Commentary
Aramex reported a strong performance in the last quarter of 2024, with revenue up 11% YoY to AED 1.7 billion in Q4, bringing full-year revenue to AED 6.3 billion—also up 11%. The fiscal year growth was broad-based across all product lines with International and Domestic Express, Freight Forwarding and Contract Logistics all reporting YoY growth driven by higher shipment volumes and further gains in market share.
Aramex is benefitting from emerging nearshoring trends as businesses increasingly streamline supply chains by positioning inventory closer to key markets. This shift fueled increased demand for Domestic Express and regional cross-border International Express, in addition to warehousing and fulfillment services. Aramex is well positioned to capitalize on this growing demand through its integrated solutions across its product portfolio, which plays a key role in shaping the company's operational strategy.
The GCC and MENAT regions remained pivotal, highlighting the strength of Aramex's home markets. GCC and MENAT both grew double digit in revenue and gross profitability in 2024 compared to 2023. Meanwhile, Oceania continued its turnaround journey, delivering almost 50% YoY growth in revenues and gross profitability in 2024.
Gross profit was up 3% to AED 399 million for Q4 2024, and up 6% to AED 1.5 billion for the full year 2024 with a margin of 24%, benefitting from the topline growth. Annual Group Selling, General, and Administrative Expenses (SG&A) remained stable as a percentage of revenue at 19%, with a 4% YoY increase in absolute terms driven by selling expenses, and reflecting the company's strategic focus on topline growth. Despite cost inflation, General and Administrative expenses were well managed and remained at the same level as last year, which confirms management's focus on cost controls.
EBIT for the Q4 2024 period was AED 89 million, representing a decline of 16% compared to Q4 2023. As a reminder, EBIT in Q4 2023 was positively boosted by a one-time settlement of approximately AED 15 million. For the full year period, EBIT grew 11% to AED 297 million with a corresponding margin of 5%.
For the period ending December 31st 2024, the Effective Tax Rate (ETR) for the full year was 25%, as the Company experienced an increase due to anticipated non-recurring items and also a change in the profit mix during the year, with more contributions from higher tax jurisdictions.
Aramex ended the year with AED 142 million in net profit, representing a growth of 10% in 2024 compared to 2023. For the Q4 2024 period, net profit was AED 66 million, down from AED 77 million reported during the same period last year.
The devaluation of foreign currencies, and in particular the devaluation of the Egyptian Pound from EGP 30.9/$ in Q4'23 to approximately EGP 49.8/$ for Q4'24 had a material and negative impact on the Company's financial results. Excluding the EGP devaluation impact, Q4 2024 Revenue was AED 1.72 billion, Gross Profit was AED 406 with a GP margin of 24% and Net Income was AED 68 million. Excluding the EGP devaluation impact, FY 2024 Revenue was AED 6.4 billion, Gross Profit was AED 1.53 billion with a GP% of 24% and Net Income was AED 144 million.
Othman Aljeda, Chief Executive Officer of Aramex, said: 'We are pleased to conclude 2024 with double digit topline growth reflecting the continued momentum across our core business lines and market share gains across our key markets. We grew group revenues by 11% YoY, driving our gross profitability up by 6% YoY, resulting in a solid gross profit margin of 24%. Our focus on cost control and efficiencies helped deliver 11% YoY growth in EBIT and 10% YoY growth in net profit for the full year 2024.
"A major industry shift this year has been the acceleration of nearshoring, with businesses repositioning inventory closer to their consumer markets to improve delivery speed and flexibility. Aramex has a clear competitive advantage to cater to this trend, thanks to its integrated solutions. We have gained significant volumes from several businesses that we have helped nearshore their stock in our key markets. Domestic volumes were up 11%, international express volumes were up 20% and our contract logistics business is operating near full capacity.
'What this means is that we are seeing more demand for local deliveries through our domestic express solutions, and a shift from long-haul cross border to shorter and intra-regional cross border activity through our international express product and trucking business. Our margin profile has adapted accordingly, while the business continues to grow at healthy levels in absolute terms. Gross profitability for our consolidated international and domestic express product was up 8%. Our contract logistics product also grew gross profitability by 8% YoY, while freight forwarding was resilient with a 4% decline in gross profitability due to increasing competition and industry pricing pressure as well as cost inflation.
'Our diversified business model and disciplined cost management ensured financial stability despite macroeconomic challenges and increase in investments associated with our expansion strategy.
"Looking ahead, 2025 will be about smart, efficient growth—scaling our business while maintaining operational discipline and driving innovation across our network.'
Product Performance
International Express (Including Parcel Forwarding)
In Thousands of
UAE Dirhams
Q4
2024
Q4
2023
% Change
(YoY)
FY
2024
FY
2023
% Change (YoY)
Revenues
615,060
655,839
(6.2%)
2,412,484
2,295,412
5%
Gross Profit
Gross Profit Margin
194,877
32%
225,611
34%
(14%)
(3%)
780,824
32%
780,241
34%
0%
(2%)
International Express Shipment Volumes
In millions of shipments
Q4
2024
Q4
2023
% Change
(YoY)
FY
2024
FY
2023
% Change (YoY)
Total Number of Shipments
7.2
7.6
(6%)
28.1
23.3
20%
The International Express business reported Q4 2024 revenues of AED 615.1 million, a 6.2% decline YoY as the business has seen the flow of volumes from international express into domestic express, reflecting the ongoing nearshoring trend. The Company expects to see the impact of nearshoring volume flows from existing customers to continue throughout the first half of 2025.
The FY 2024 performance remained robust at 5% revenue growth compared to FY 2023, with shipment volumes increasing by 20% to 28 million.
Gross profit declined 14% in Q4 2024 to AED 194.9 million and was stable at AED 780.8 million for the full year period. The gross profit margin declined from 34% to 32% for both the quarter and the full year, due to changes in customer profile and trade lanes adjustments with less long-haul and more cross-border activity taking place intra region in GCC and MENAT, reflecting the nearshoring trend.
Domestic Express
In Thousands of
UAE Dirhams
Q4
2024
Q4
2023
% Change
(YoY)
FY
2024
FY
2023
% Change (YoY)
Revenues
480,688
361,726
33%
1,685,599
1,427,360
18%
Gross Profit
Gross Profit Margin
113,563