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Al Etihad
5 days ago
- Business
- 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.'
Khaleej Times
01-04-2025
- Business
- Khaleej Times
Dubai population on track to reach 4 million this year
Dubai's population continued to increase at a steady pace in the first quarter of 2025, crossing 3.9 million for the first time as the inflow of new residents continued. According to Dubai Statistics Centre data, the emirate's population grew 51,295 during January to March 2025 as compared to 52,143 during the same period last year, reflecting Dubai and UAE's maintaining strong appeal for foreign professionals and millionaires. At the end of the first quarter of 2025, Dubai's population stood at 3.914 million. If the population continues at the current pace, it is expected that the population of the regional financial centre is set to reach 4 million landmark in the third quarter of this year. In 2024, the emirate's population grew by over 169,000 to 3.825 million. It was the fastest increase in annual population rate since 2018. The emirate's growing population will drive growth of multiple sectors mainly real estate, retail, food and beverages (F&B), travel and tourism, hospitality and many others. Emirates NBD Research noted in its Global Investment Outlook 2025 that the UAE's non-oil economy is 'benefitting from growing population.' 'A key driver of economic growth for the UAE is its expanding population. A vibrant labour market, long-term resident visas, coupled with best-in-class infrastructure for corporates, encourage white-collar workers to shift to the UAE. This steady influx of residents boosts consumption across real estate, telecom, retail and hospitality, supporting sustainable economic growth,' said Maurice Gravier, group chief investment officer, Emirates NBD Research. He added that the UAE's growing working-age population will be one of the main economic growth drivers and prosperity in the country. According to Emirates NBD Research, Dubai's GDP grew 3.1 per cent in the first 9 months of 2024 as the total level of real GDP reached Dh339 billion, up from Dh329 billion estimated for the first 9 months of 2023. According to the Global Investment Outlook 2025, the UAE is witnessing 'a growing affluent expat population' which accounts for a major portion of Dubai and UAE's population.
