Aramex maintains stable revenue in H1 2025 amid plans for transformation
A.SREENIVASA REDDY (ALETIHAD) Aramex reported stable revenues of Dh3.06 billion for the first half of 2025, marking a slight 1% year-on-year increase, as the company continues to navigate a strategic shift in product mix and evolving logistics flows. For the second quarter, revenue held steady at Dh1.50 billion compared to the same period last year.Despite pressures on profitability, the company highlighted consistent execution and an adaptive approach to regional demand. Nicolas Sibuet, Acting Group CEO, said, 'Our H1 2025 results reflect consistent execution and a clear alignment with shifting customer needs. While we face margin pressures and a changing product mix, we have taken decisive actions through our Accelerate28 strategy to realign our operations, enhancing our ability to better serve our customers across key markets, and lay the groundwork for sustainable, long-term value creation.'Gross profit for H1 stood at Dh694 million, down 6% year-on-year, with the margin softening to 22.7% from 24.4%. In Q2, gross profit came in at Dh329 million, with a margin of 22%, compared to Dh345 million and a 23.1% margin in the same period of 2024. The company attributed this to higher direct costs and a greater contribution from domestic and logistics segments with thinner margins than international express.EBITDA for the half-year was Dh252 million, a 20% decline from last year, while Q2 EBITDA stood at Dh105 million, down from Dh135 million. EBIT totalled Dh77 million in H1 and Dh16 million in Q2, reflecting year-on-year drops of 45% and 66%, respectively. Excluding one-off items related to restructuring and acquisition costs, normalised EBIT for H1 was Dh95 million.Aramex reported a net profit of Dh7.9 million for H1 2025, sharply lower than the Dh49.5 million posted in H1 2024. Q2 posted a net loss of Dh9.3 million, versus a profit of Dh2.9 million last year. However, normalised net profit reached Dh33 million in H1, and Dh5.4 million in Q2, highlighting the underlying operational strength despite transitional costs.The company's Accelerate28 programme, introduced in Q1, is underway with more than 300 initiatives aimed at long-term margin improvement. ADQ, the Abu Dhabi-based sovereign investor focused on critical infrastructure and global supply chains, has acquired a 63.16% stake in Aramex, which is listed on the Dubai Financial Market (DFM). Following the market close on Thursday, Aramex had a market capitalisation of Dh4 billion.At the time of launching its takeover bid, ADQ acknowledged that Aramex's transformation would be complex and capital-intensive, likely requiring time to materialise and potentially limiting returns for shareholders in the short to medium term.
Commenting on the acquisition, Mansour AlMulla, Deputy Group Chief Executive Officer at ADQ, had said, 'As the majority shareholder in Aramex, we plan to leverage our extensive track record of growing local companies into globally competitive market leaders for the benefit of Aramex and all its stakeholders.'
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Al Etihad
9 hours ago
- Al Etihad
Aramex maintains stable revenue in H1 2025 amid plans for transformation
7 Aug 2025 21:14 REDDY (ALETIHAD) Aramex reported stable revenues of Dh3.06 billion for the first half of 2025, marking a slight 1% year-on-year increase, as the company continues to navigate a strategic shift in product mix and evolving logistics flows. For the second quarter, revenue held steady at Dh1.50 billion compared to the same period last pressures on profitability, the company highlighted consistent execution and an adaptive approach to regional demand. Nicolas Sibuet, Acting Group CEO, said, 'Our H1 2025 results reflect consistent execution and a clear alignment with shifting customer needs. While we face margin pressures and a changing product mix, we have taken decisive actions through our Accelerate28 strategy to realign our operations, enhancing our ability to better serve our customers across key markets, and lay the groundwork for sustainable, long-term value creation.'Gross profit for H1 stood at Dh694 million, down 6% year-on-year, with the margin softening to 22.7% from 24.4%. In Q2, gross profit came in at Dh329 million, with a margin of 22%, compared to Dh345 million and a 23.1% margin in the same period of 2024. The company attributed this to higher direct costs and a greater contribution from domestic and logistics segments with thinner margins than international for the half-year was Dh252 million, a 20% decline from last year, while Q2 EBITDA stood at Dh105 million, down from Dh135 million. EBIT totalled Dh77 million in H1 and Dh16 million in Q2, reflecting year-on-year drops of 45% and 66%, respectively. Excluding one-off items related to restructuring and acquisition costs, normalised EBIT for H1 was Dh95 reported a net profit of Dh7.9 million for H1 2025, sharply lower than the Dh49.5 million posted in H1 2024. Q2 posted a net loss of Dh9.3 million, versus a profit of Dh2.9 million last year. However, normalised net profit reached Dh33 million in H1, and Dh5.4 million in Q2, highlighting the underlying operational strength despite transitional company's Accelerate28 programme, introduced in Q1, is underway with more than 300 initiatives aimed at long-term margin improvement. ADQ, the Abu Dhabi-based sovereign investor focused on critical infrastructure and global supply chains, has acquired a 63.16% stake in Aramex, which is listed on the Dubai Financial Market (DFM). Following the market close on Thursday, Aramex had a market capitalisation of Dh4 the time of launching its takeover bid, ADQ acknowledged that Aramex's transformation would be complex and capital-intensive, likely requiring time to materialise and potentially limiting returns for shareholders in the short to medium term. Commenting on the acquisition, Mansour AlMulla, Deputy Group Chief Executive Officer at ADQ, had said, 'As the majority shareholder in Aramex, we plan to leverage our extensive track record of growing local companies into globally competitive market leaders for the benefit of Aramex and all its stakeholders.'
Zawya
11 hours ago
- Zawya
Aramex reports stable group revenues of AED3.06bln in H1 2025, supported by regional logistics growth
RELATED TOPICS EARNINGS RELATED COMPANIES Aramex Navigator Soluti Abu Dhabi Dev. ADPC Increased demand for local and regional solutions: Aramex continues to observe a significant shift in shipment flows, as brands place greater emphasis on proximity to their end consumers, which results in activity transitioning from extended international routes to more regional and domestic channels. Our volume performance for the first half year reflects these nearshoring trends, with our domestic, logistics and freight business capturing the volume outflows from our international express business. Revenue evolution: Group Revenues were relatively stable at AED 3.06 billion, up 1% YoY in H1 2025. Aramex reported double digit growth in local solutions with Domestic revenues up 13% YoY and Logistics revenues up 22% YoY in H1 2025; Freight Forwarding posted a solid revenue increase of 8% YoY in H1 2025, while International Express declined 15% YoY in H1 2025. Product Contribution: As expected, the high-margin International Express business has a lower contribution to Group revenues and profits in H1 2025, leading to a change in the Group product mix and profitability profile. Therefore, the AED 83 million decline in International Express gross profitability in H1 2025 offset the growth in gross profitability from Domestic Express (AED 8 million), Freight Forwarding (AED 9 million) and Logistics (AED 22 million). Profitability under pressure: Our profitability profile has adapted in line with the change in product mix, resulting in a recalibration of the Group Margin profile to 23% Gross Profit Margin, and a 6% decline in Gross Profit YoY in H1 2025 to AED 694 million and a significant contraction in the bottom line. In addition, one-off expenses of AED 26 million incurred during H1 2025, associated with the Q Logistics acquisition costs, the regional restructuring, and the transformation program, have further impacted EBIT and Net Profit performance. Excluding these one-offs, normalized EBIT was AED 95 million and normalized Net Income was AED 33 million in H1 2025, representing a significant decline in profitability of 32% and 34%, respectively. Accelerate28: The transformation program, launched in Q1 as part of the Accelerate28 strategy, is in its early stages and progressing well. With a new four-region structure and value capture initiatives underway, the Company is focused on protecting its bottom line while continuing investment in strategic areas in response to the evolving industry landscape. ADQ Acquisition: On July 25th 2025, the Company announced that it is a subsidiary of ADQ, following the completion of regulatory approvals for ADQ's successful acquisition of 63% of Aramex shares, which are held through Q Logistics and Abu Dhabi Ports. This partnership affirms the value Aramex has created so far, and opens new doors for innovation, scale and growth. Dubai, UAE: Aramex (DFM: ARMX) a leading global provider of comprehensive logistics and transportation solutions, today announced its financial results for the second quarter ('Q2') and first half ('H1') ending 30 June 2025. Nicolas Sibuet, Acting Group Chief Executive Officer said: 'Our H1 2025 results reflect consistent execution and a clear alignment with shifting customer needs. While we face margin pressures and a changing product mix, we have taken decisive actions through our Accelerate28 strategy to realign our operations, enhancing our ability to better serve our customers across key markets, and lay the groundwork for sustainable, long-term value creation. The partnership with ADQ marks a significant milestone, accelerating our transformation program.' Financial Performance Commentary The results reflect a period of stable revenues, ongoing margin recalibration, and significant structural transformation as the company responds to evolving industry trends and positions itself for future growth. Group Revenues reached AED 1.50 billion in Q2 2025, unchanged from Q2 2024 and H1 2025 revenues totaled AED 3.06 billion, marking a 1% increase YoY. Looking at regional performance, Aramex posted double digit growth in revenues and GP in the GCC in Q2 2025, and single-digit growth in Revenues and GP in Asia Pacific, offsetting the softness seen elsewhere across the company's global operations and with similar trends observed for the half year period. As global supply chains continue to regionalize, Aramex is actively evolving its product mix, adapting to shifting logistics flows as clients reposition inventory closer to key consumption markets—a trend driven by supply chain localization and regional consolidation. The Company continues to navigate this strategic shift with a strong focus on operational efficiency, data-driven performance management, and customer-centric innovation. Domestic Express and Logistics segments delivered robust growth (Domestic Express revenues up 12% in Q2 and 13% in H1; Logistics up 23% in Q2 and 22% in H1), reflecting increasing demand for regional and local solutions. Simultaneously, International Express revenues fell 16% in Q2 and 15% in H1 as shipment flows shifted from extended international to more regional and domestic channels in line with nearshoring trends. Freight Forwarding revenues were up 7% in Q2 and 8% in H1, buoyed by strong gains in air, sea, and land freight volumes. Growth in volumes was delivered despite a challenging market environment with pressure on oil prices impacting activity in the energy sector; geopolitical tensions with airspace closure, and an extended holiday period with two Eid holidays during Q2 2025 reducing the number of working days. Gross Profit for H1 2025 was AED 694 million, with a corresponding margin of 23%, down from 24% in the same period last year. In Q2 2025, the Gross Profit Margin stood at 22%, reflecting a consistent trend across the half. The margin decline reflects ongoing changes in product mix, elevated direct costs due to increased capacity in key growth markets, and persistent market pricing pressures as well as broader inflationary trends. Group Selling, General, and Administrative Expenses (SG&A) rose by 3% YoY in Q2 2025, representing 21% of total revenues. Excluding one-off expenses associated with the regional restructure and transformation program, normalized SG&A declined 2% YoY, consistent with disciplined overheads management and the strategic focus on performance optimization. SG&A expenses in H1 2025 followed a similar trend, reflecting consistent management of overheads. EBITDA for H1 2025 was reported at AED 252 million (down 20% YoY), while EBIT came in at AED 77 million (down 45%), reflecting the decline in gross profitability. For the second quarter period, EBITDA totaled AED 105 million, while EBIT reached AED 16 million. Reflecting the transitional phase the Company is navigating, while continuing to invest in regional capabilities and long-term transformation initiatives, the first half of 2025 recorded AED 8 million in Net Profit, while Q2 posted a loss of AED 9 million. The decline in EBIT and Net Profit is mainly due to the shift in product mix and decline in gross profitability, as well as certain one-off expenses incurred during the period, related to the ADQ acquisition, transformation program and regional restructuring. Excluding these one-off expenses, normalized Q2 2025 EBIT was AED 31 million, down 33% YoY and Net Income was AED 5 million, up 87% YoY. For the half year period, normalized EBIT was AED 95 million and normalized Net Profit was AED 33 million. Balance Sheet: As of 30 June 2025, Aramex maintained a strong financial profile with AED 542 million in cash and a Debt to EBITDA ratio of 3.4x (including IFRS16), providing a solid foundation for the future investments and transformation activities under way. Accelerate28 The transformation program, launched in Q1 2025 as part of the Accelerate28 strategy, is in its early stages and is progressing well. This is a complex transformation program across nine workstreams covering key regions, products and functions. We have more than 300 initiatives planned for implementation with the EBIT impact expected to be fully realized by 2028. With these value capture initiatives underway, alongside the new four-region structure and a strategic growth mandate, the Company is focused on protecting its bottom line while continuing investment in strategic areas in response to the evolving industry landscape. Product Performance Express (International Express and Domestic Express Consolidated) Express Volumes (International Express and Domestic Express Consolidated) Our Express product consists of our International Express and Domestic Express products consolidated. Express volumes grew 3% Y-o-Y in both H1 and Q2 2025, reaching 68 million and 33 million shipments respectively. This growth was driven entirely by Domestic Express, which added 3million shipments in Q2, while international express saw outflows of 1 million shipments during the quarter. Similar trends were observed for the half-year period. Express revenues reached AED 1.91 billion in H1 2025, down 4% Y-o-Y, with Q2 revenues at AED 916 million, a 5% decline. Gross profit for the Express product in H1 2025 stood at AED 508 million, with gross margin of 27%. Profitability was impacted by a lower share of long-haul shipments and an increase in costs associated with 1) management of higher volumes in domestic express; and 2) a growth in variable costs attributed to extra staffing to support fixed capacity during the extended holiday period. Freight-Forwarding Freight-Forwarding Shipment Volumes Freight Forwarding delivered revenues of AED 871 million for the first half of the year and AED 438 million in Q2 2025, representing a solid growth of 8% and 7% YoY respectively. The segment benefitted from robust volume growth across all modes, despite ongoing geopolitical tensions in the region which affected cross-border movements in Land Freight and Air Freight. For the H1 period, Air Freight rose 8%, Sea Freight (FCL) by 13%, Sea Freight (LCL) by 35%, and Land Freight (LTL) by 22%. Q2 trends reinforced this growth trajectory, highlighting Aramex's ability to serve diversified trade flows across industries and geographies. This was supported by a record setting operational highlight in Q2 2025, with Aramex freight handling the biggest charter movement in its history, on the US / ME and Dubai / ME trade lanes. Gross Profit for the segment reached AED 117 million in H1 and AED 57 million in Q2, both periods maintaining a steady margin of 13%. Operational efficiency, disciplined pricing, and network optimization helped offset inflation and competitive pressure. However, uncertainty remains, with US tariffs leading to volatility in key trade lanes, and the drop in oil prices impacting shipping activity. Logistics and Supply Chain Solutions The Logistics and Supply Chain Solutions segment posted revenue growth of 22% and 23% in H1 and Q2 2025 respectively, reflecting robust demand for warehousing and fulfillment services. Aramex continued to operate at near full warehouse capacity throughout the half-year, driven by the nearshoring trend and onboarding of new client contracts. Gross Profit surged by 75% year-on-year in H1 to AED 50 million, while Q2 Gross Profit more than doubled to AED 27 million, driven by the change in revenue quality and improvement in revenue per square meters across key facilities. Gross Profit Margin significantly improved to 21% in Q2 2025, underscoring the segment's growing contribution to Group profitability. Gross Profit Margin was 19% for H1 2025 period. About Aramex: Founded in 1982, Aramex has emerged as a global leader in logistics and transportation, renowned for its innovative services tailored to businesses and consumers. As a listed company on the Dubai Financial Market (since 2005) and headquartered in the UAE, our strategic location facilitates extensive customer reach worldwide, bridging the gap between East and West. With operations in 600+ cities across 70 countries, Aramex employs over 16,000 professionals. Our success is attributed to four distinct business products that provide scalable, diversified, and end-to- end services for customers. These products are: International Express, encompassing Aramex's Parcel Forwarding Business (Shop & Ship and MyUS). Domestic Express Freight Forwarding Logistics & Supply Chain Solutions Sustainability is at the core of our vision and mission. To build a truly sustainable business, we leverage our core competencies to make a positive impact as responsible members of the communities we serve. Through partnerships with local and international organizations, we strive to expand our reach and benefit more individuals through targeted programs and initiatives, ensuring long-term positive change and community development. As part of our commitment to a sustainable future, we are dedicated to achieving Net-Zero emissions by 2050, aligning our efforts with global climate goals and integrating sustainable practices across our operations.
Al Etihad
a day ago
- Al Etihad
Burjeel Holdings reports 129% surge in Q2 profit
6 Aug 2025 20:41 A. SREENIVASA REDDY (ABU DHABI) Burjeel Holdings recorded a sharp 128.9% year-on-year surge in second-quarter net profit to Dh148 million, driven by strong revenue growth, improved patient yield, and operational efficiencies across its expanding healthcare in Q2 2025 rose 18.7% to Dh1.4 billion, while EBITDA jumped 59.4% to Dh306 million, reflecting stronger margins and the benefits of asset optimisation. The quarterly performance significantly boosted the group's first-half results, with net profit for H1 reaching Dh187 million — up 10.6% from Dh169 million in the same period last revenue rose 12.2% to Dh2.68 billion, supported by sustained demand for complex care services and expansion across key specialties. EBITDA for H1 stood at Dh487 million, marking a 14.2% increase over the prior robust performance was underpinned by a 12% increase in patient footfall in Q2. Across the first half, total patient visits rose to 3.4 million, with outpatient numbers up 8.6% to 3.28 million and inpatient footfall climbing 14.6% to 88,000. The Group also performed nearly 23,000 surgeries in Q2, representing an 18.7% annual increase, while bed occupancy improved to 69% from 65% in the year-ago quarter.'The second quarter delivered exceptionally strong results, with 19% revenue growth driven by a 12% increase in patient footfall and improved yield. EBITDA rose by 59%, accompanied by a margin uplift to 22%,' said CEO John Sunil.'These results reflect tangible progress in key operational areas such as physician manpower optimisation, formulary management, and cost control, while our strategic focus on super-specialty care is beginning to yield measurable benefits, enhancing both revenue and profitability,' he added. Sunil said the Group's oncology platform is now the UAE's largest private network and highlighted the growth in services related to transplants, fertility, mental health, and diagnostics. He reaffirmed Burjeel's focus on converting recent investments into sustained expansion and margin improvement. Source: Aletihad - Abu Dhabi
