Latest news with #DomesticExpress
Zawya
08-05-2025
- Business
- Zawya
Aramex delivers stable revenues of AED 1.56bln as business boosts intra-regional activity
Revenue Evolution: Aramex reported stable Group Revenue of AED 1.56 billion, up 1%YoY in Q1 2025, driven by revenue growth in Domestic Express (up 13%), Freight Forwarding (up 9%), and Logistics (up 21%), which offset the decline in International Express (down 13%). As a result, the International Express business has a lower contribution to Group revenues and profits, leading to a change in the Group product mix due to nearshoring. Nearshoring impact: Businesses continue to streamline supply chains by positioning inventory closer to key markets. As a result of this nearshoring trend, Aramex has seen key customers reposition volumes from long-haul to short-haul trade lanes. For Aramex, this means a change in the product mix, with a flow of volumes out of long-haul international express and an increase in short-haul regional cross-border express and domestic, in addition to warehousing and fulfilment services. Volume Growth: Domestic express volumes were up 8%, land freight LTL volumes were up 21%, and land freight FTL volumes were up 4%. The warehousing business is operating near full capacity, benefitting from the nearshoring trend. Margin recalibration: Our profitability profile has adapted in line with the change in product mix, leading to a recalibration in the Group margin profile to 23.3% Gross Profit Margin in Q1 2025 (down from 25.7% Gross Profit Margin in Q1 2024). We expect to continue seeing the impact of nearshoring volume flows from existing customers throughout the first half of 2025 impacting our profitability. Profitability was also impacted by cost inflation in Q1 2025, as well as an increase in direct costs associated with the business increasing capacity in key markets to cater to increased volumes. SG&A control: Selling, General and Administrative Expenses (SG&A) costs were up 1% YoY in Q1 2025, and represented 20% of total revenues, reflecting management's focus on cost controls. Balance Sheet: Aramex continues to maintain a robust financial position with a cash balance of AED 545 million and a Debt to EBITDA ratio of 2.9x (including IFRS16) as of 31 March 2025. Accelerate28: During the first quarter of the year, Aramex launched a company-wide transformation initiative, Accelerate28. The Company's geographic activities have been reorganized from eight regions into four regions to make the business more agile in adapting to the changes required by the evolving industry landscape. Under Accelerate28, certain value capture activities have been initiated, focusing on better pricing and operational efficiencies to help Aramex unlock value. Dubai, UAE: Aramex (DFM: ARMX) a leading global provider of comprehensive logistics and transportation solutions, today announced its financial results for the First Quarter ('Q1'') ending 31 March 2025. Financial Performance Commentary Aramex delivered modest topline growth in Q1 2025, with revenue up 1% YoY to AED 1.56 billion, driven by revenue growth in Domestic Express (up 13%), Freight Forwarding (up 9%), and Logistics (up 21%), which offset the decline in International Express (down 13%). The company's strategy continues to evolve in response to nearshoring-led shifts in logistics flows. As more clients bring inventory closer to consumers, Aramex has seen stronger demand in Domestic Express, warehousing, and regional cross-border services, leading to a recalibration in its margin profile. Gross Profit was AED 365 million (–8% YoY) and GP margin was 23%, attributed to a lower contribution from international express and an increase in direct costs. Aramex is navigating this transition with a clear focus on operational efficiency, performance management, and customer-centric innovation. While the transition in product mix presents margin volatility in the short term, the Company made good progress with growth in volumes across domestic express and all freight forwarding products, as well as an increase in utilization across its warehouses. The GCC region remained pivotal, highlighting the strength of Aramex's home markets. Revenue in the GCC increased 15% YoY in Q1 2025, with the region now contributing 44% of total group revenues, a significant increase from the 39% contribution to total revenues reported at Q1 2024. MENAT, India and Sub-Saharan Africa contribute 20%; Europe and US contribute 20% as well, and Asia Pacific contributes 16% to total group revenues. Group Selling, General, and Administrative Expenses (SG&A) were up 1% YoY, and represented 20% of total revenues, in line with management's focus on cost controls. EBITDA was AED 147 million (–19%) and EBIT was AED 61 million (–34%) due to the decline in Gross Profit. For the period ending March 31st, 2025, the Effective Tax Rate (ETR) increased to 33%, due to the introduction of domestic income tax in GCC countries, in addition to the change in the profit mix during the year, with more contributions coming from higher tax jurisdictions. During Q1 2025 the Company incurred non-operational expenses associated with legal and consultancy fees for the Q Logistics Acquisition Offer. Normalized Net Profit, excluding these non-operational expenses, was AED 25 million in Q1 2025, down 46% from AED 47 million in Q1 2024. Reported Net Profit for the first quarter of 2025 was AED 17 million. These results reflect a broader pivot toward more regionalized, service-intensive logistics, and Aramex's investments to support this shift. Post period, at the 2024 Annual General Meeting held on 20 March 2025, the shareholders of Aramex approved the recommendation of the Board of Directors to not distribute a dividend payment for the financial year ended 31 December 2024. This decision reflects the Company's capital allocation priorities toward transformation and growth programs, including investments in infrastructure, technology, and operational efficiencies, aimed at strengthening profitability and delivering long-term shareholder value. Nicolas Sibuet, Acting Group Chief Executive Officer said: 'This quarter reflects both continuity and change — stable revenues, healthy volumes, and a clear shift in customer behaviour. As supply chains become more regional and service expectations evolve, Aramex is well placed to deliver agile, integrated solutions that meet the moment. To accelerate our journey, we have launched a company-wide transformation initiative under our strategy Accelerate28 to help us adapt with purpose, focusing on efficiency and performance.' The Courier business reported volume growth of 2% YoY in Q1 2025 compared to the same period last year, as the business continues to see the flow of volumes from international express into domestic express, reflecting the ongoing nearshoring trend from current customers. We expect to continue seeing an impact throughout the first half of 2025. Q1 2025 revenue was AED 991 million, a 3% decline YoY attributed to a 13% decline in International Express revenues which was partially offset by a 13% growth in Domestic revenues in Q1 2025 compared to Q1 2024. An increase in direct costs and inflationary pressures contributed to the decline in profitability of the Courier product, in addition to the changes in customer mix. Gross profit declined 13% in Q1 2025 to AED 272 million and the gross profit margin declined to 27%. Freight Forwarding recorded a 9% YoY revenue increase in Q1 2025 to AED 433 million, with broad-based volume growth across air, land, and sea. Air freight volumes were up 2%, sea freight (LCL) increased 26%, and land freight (LTL) jumped 21%, driven by growth in e-commerce and energy. Gross Profit for the segment rose 7% YoY to AED 61 million, with a stable margin of 14%. While pricing pressure and competition remain industry-wide challenges, Aramex remains focused on operational efficiency and customer service. Logistics and Supply Chain Solutions delivered one of the strongest performances in Q1 2025. Revenue surged 21% YoY to AED 129 million, supported by higher warehouse utilization, new client contracts, and expanded capacity. Gross Profit jumped 40% YoY to AED 23 million, with the margin improving to 18% in Q1 2025, up from 15% in Q1 2024. The segment continues to benefit from the nearshoring trend and Aramex's investment in scalable logistics infrastructure. 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. For more information, please visit us:
Trade Arabia
12-02-2025
- Business
- Trade Arabia
Aramex delivers double-digit revenue growth to $1.7bn
Aramex, a leading global provider of comprehensive logistics and transportation solutions, reported a strong performance in the last quarter of 2024, with revenue up 11% YoY to AED1.7 billion ($462.84 million) in Q4, bringing full-year revenue to AED6.3 billion ($1.715 billion), also up 11%. Gross profit was up 3% to AED399 million for Q4 2024, and up 6% to AED1.5 billion for the full year 2024 with a margin of 24%, benefitting from the topline growth. Aramex ended the year with AED142 million in net profit, representing a growth of 10% in 2024 compared to 2023. For the Q4 2024 period, net profit was AED66 million, down from AED77 million reported during the same period last year. 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, the company said. 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 capitalise on this growing demand through its integrated solutions across its product portfolio, which plays a key role in shaping the company's operational strategy, it said. 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. 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 AED89 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 AED15 million. For the full year period, EBIT grew 11% to AED297 million with a corresponding margin of 5%. For the period ending December 31, 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, it said. 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 AED1.72 billion, gross profit was AED406 with a GP margin of 24% and net income was AED68 million. Excluding the EGP devaluation impact, FY 2024 revenue was AED6.4 billion, gross profit was AED1.53 billion with a GP% of 24% and net income was AED144 million, the company said. 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.
Zawya
12-02-2025
- Business
- Zawya
Aramex delivers double-digit revenue growth to $1.7bln
Aramex, a leading global provider of comprehensive logistics and transportation solutions, reported a strong performance in the last quarter of 2024, with revenue up 11% YoY to AED1.7 billion ($462.84 million) in Q4, bringing full-year revenue to AED6.3 billion ($1.715 billion), also up 11%. Gross profit was up 3% to AED399 million for Q4 2024, and up 6% to AED1.5 billion for the full year 2024 with a margin of 24%, benefitting from the topline growth. Aramex ended the year with AED142 million in net profit, representing a growth of 10% in 2024 compared to 2023. For the Q4 2024 period, net profit was AED66 million, down from AED77 million reported during the same period last year. 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, the company said. 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 capitalise on this growing demand through its integrated solutions across its product portfolio, which plays a key role in shaping the company's operational strategy, it said. 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. 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 AED89 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 AED15 million. For the full year period, EBIT grew 11% to AED297 million with a corresponding margin of 5%. For the period ending December 31, 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, it said. 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 AED1.72 billion, gross profit was AED406 with a GP margin of 24% and net income was AED68 million. Excluding the EGP devaluation impact, FY 2024 revenue was AED6.4 billion, gross profit was AED1.53 billion with a GP% of 24% and net income was AED144 million, the company said. 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,' he said. Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Al Bawaba
12-02-2025
- Business
- Al Bawaba
Aramex Delivers Double-Digit Topline Performance for FY 2024, Driven by Consistent Volume Growth Across Key Products
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
