Latest news with #FreightForwarding
Zawya
4 days ago
- Business
- 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.
Yahoo
24-06-2025
- Business
- Yahoo
Freight Forwarding Market to Surge from USD 498.5 Billion to USD 782.4 Billion by 2035 - Meticulous Research®
Digital Transformation, E-commerce Growth, and Multimodal Transport Solutions Drive 4.6% CAGR Growth Across Global Logistics Operations REDDING, Calif., June 24, 2025 /PRNewswire/ -- The freight forwarding market is experiencing significant expansion, with market valuation expected to grow from USD 498.5 billion in 2025 to USD 782.4 billion by 2035, growing at a CAGR of 4.6% during the 2025-2035 forecast period. The market was valued at USD 478.2 billion in 2024, according to the latest research report "Freight Forwarding Market by Service Type, Transportation Mode (Air, Ocean, Road, Rail, Multimodal), Customer Type (B2B, B2C), End User & Geography - Global Forecast to 2035", published by Meticulous Research®. This steady growth reflects the global logistics industry's fundamental transformation toward digitalized, interconnected freight forwarding systems where traditional logistics operations and advanced technology platforms collaborate to achieve unprecedented levels of efficiency, transparency, and customer service excellence. Access your FREE sample report: Globalization and E-commerce Transform International Trade Logistics The freight forwarding market stands at the forefront of global trade evolution, driven by increasing globalization, international trade expansion, and the exponential growth of e-commerce and cross-border shopping. Modern freight forwarders are implementing sophisticated digital platforms that enable real-time shipment tracking, automated documentation processing, and seamless multi-party communication across complex international supply chains. Digital Freight Forwarding Platforms Revolutionize Logistics Operations The emergence of digital freight forwarding services represents a paradigm shift from traditional logistics operations. Advanced IoT sensors, AI-powered analytics, and blockchain technology are transforming freight management through enhanced supply chain visibility, predictive maintenance capabilities, and automated compliance management. These digital solutions enable freight forwarders to provide customers with unprecedented transparency and control over their shipments. Rising Demand for Just-in-Time Delivery Services Global manufacturers and retailers increasingly depend on just-in-time delivery services to optimize inventory management and reduce operational costs. This demand drives freight forwarders to develop more sophisticated logistics solutions that can accommodate tight delivery schedules while maintaining cost-effectiveness and reliability across diverse transportation modes. Market Leadership Across Service Types and Transportation Modes Transportation and Cargo Handling Segment Commands Market Dominance The Transportation and Cargo Handling segment emerges as the largest market share holder, driven by fundamental requirements for physical goods movement across international borders. However, Digital Freight Forwarding Services represent the fastest-growing segment, leveraging advances in digital platforms, real-time tracking systems, and automated booking processes to streamline traditional freight forwarding operations. Ocean Freight Leads Transportation Mode Market Share Ocean freight maintains its position as the dominant transportation mode due to cost-effectiveness for international shipping and capacity to handle large cargo volumes. The Multimodal Transportation segment demonstrates the highest growth potential, driven by increasing demand for optimized logistics solutions that combine efficiency, cost-effectiveness, and sustainability across different transportation methods. Air freight continues serving high-value and time-sensitive cargo markets, while road and rail transportation provide essential regional connectivity and last-mile delivery solutions. Explore customization options: Retail and E-commerce Drive End-User Market Growth E-commerce Sector Demonstrates Market Leadership The Retail and E-commerce segment maintains its position as the largest end-user category, building on explosive growth in online shopping and cross-border e-commerce activities. Modern e-commerce operations require sophisticated freight forwarding solutions capable of handling diverse product categories, varying shipment sizes, and complex international delivery requirements. Direct-to-consumer business models and expanding cross-border shopping create sustained demand for specialized freight forwarding services that can manage individual customer shipments alongside traditional bulk cargo operations. Healthcare and Pharmaceuticals Show Rapid Growth Trajectory The Healthcare and Pharmaceuticals industry exhibits the highest growth potential as global pharmaceutical trade expands and specialized logistics requirements increase. Freight forwarders are developing temperature-controlled transportation solutions, time-sensitive delivery capabilities, and regulatory compliance systems essential for medical and pharmaceutical shipments. Regional Dynamics Shape Global Market Evolution Asia-Pacific Establishes Freight Forwarding Leadership Asia-Pacific dominates the global freight forwarding market, leveraging China's manufacturing dominance, rapidly growing regional economies, and substantial investments in logistics infrastructure development. The region's role as a global manufacturing hub, combined with expanding middle-class populations and growing e-commerce adoption, positions Asia-Pacific for continued market leadership throughout the forecast period. Increasing trade volumes between Asian countries and global markets create additional growth opportunities as regional economies strengthen their international trade relationships and modernize logistics capabilities. Latin America Shows Fastest Growth Potential While Asia-Pacific leads in market share, Latin America demonstrates the fastest projected growth rate during the forecast period. This rapid expansion is driven by increasing international trade agreements, expanding e-commerce adoption, growing manufacturing sectors, and significant investments in logistics infrastructure development across the region. Emerging markets in Latin America are experiencing transformative logistics infrastructure development, creating substantial opportunities for freight forwarding service providers seeking to establish regional presence and capture market share. Technology Innovation Unlocks Future Opportunities Integration of Advanced Technologies Drives Efficiency AI-powered predictive analytics, IoT sensor networks, and blockchain-based documentation systems are revolutionizing freight forwarding operations through enhanced supply chain visibility, automated compliance management, and predictive maintenance capabilities. These technological advances enable freight forwarders to provide customers with real-time shipment tracking, proactive issue resolution, and optimized routing decisions. Green Logistics and Sustainable Freight Solutions Environmental sustainability considerations are driving development of green logistics solutions and sustainable freight forwarding practices. Freight forwarders are implementing carbon footprint tracking systems, optimizing transportation routes for fuel efficiency, and developing multimodal solutions that reduce environmental impact while maintaining service quality and cost-effectiveness. View complete market analysis: Key Players in Freight Forwarding Market The freight forwarding market features intense competition among established logistics giants, specialized freight forwarders, regional leaders, and innovative digital platforms. Leading players include DHL Global Forwarding (Deutsche Post DHL Group), Kuehne + Nagel International AG, DSV Panalpina A/S, DB Schenker, Expeditors International of Washington, Inc., C.H. Robinson Worldwide, Inc., Nippon Express Co., Ltd., UPS Supply Chain Solutions, Sinotrans Limited, Bolloré Logistics, CEVA Logistics (CMA CGM Group), Hellmann Worldwide Logistics, GEODIS, Agility Public Warehousing Company K.S.C.P., Panalpina World Transport (Holding) Ltd., Kerry Logistics Network Limited, Flexport, Inc., Yusen Logistics Co., Ltd., FedEx Logistics, Inc., and Freight Systems Inc. Related Reports: Digital Transformation Market Size, Share, Forecast, & Trends Analysis Airport Logistics Systems Market Size, Share, Forecast, & Trends Analysis Logistics Automation Market Size, Share, Forecast, & Trends Analysis Connected Logistics Market Size, Share, Forecast, & Trends Analysis About Meticulous Research® Meticulous Research® was founded in 2010 and incorporated as Meticulous Market Research Pvt. Ltd. in 2013 as a private limited company under the Companies Act, 1956. Since its incorporation, the company has become the leading provider of premium market intelligence, strategic insights, and consulting services to serve clients across 11 major industries globally. Meticulous Research® offers comprehensive market research reports, custom research, and consulting services. Our research studies help clients make informed business decisions and understand emerging business trends and opportunities. The company's expertise spans across various domains, enabling it to provide accurate insights and strategic recommendations to its clients. Contact:Mr. Khushal BombeMeticulous Market Research Pvt. Ltd.1267 Willis St, Ste 200 Redding,California, 96001, +1-646-781-8004Europe: +44-203-868-8738APAC: +91 744-7780008Email: sales@ Source: Logo: View original content: SOURCE Meticulous Market Research Pvt. Ltd. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
South China Morning Post
14-05-2025
- Business
- South China Morning Post
Hong Kong ‘can expect large rise in exports' amid US-China tariff war pause
Hong Kong can expect a large increase in exports in the next two months at the latest due to merchants rushing to send their products to the United States, despite higher shipping costs in light of a 90-day pause on the country's tariff dispute with China, industry representatives have said. Following the breakthrough in talks over the weekend, the US pledged to reduce its April tariffs by 91 percentage points and by another 24 points for the next 90 days. The moves leave duties of 10 per cent in place for Chinese goods. But the 20 per cent tariff on Chinese goods imposed by the US earlier this year, which Washington said was intended to halt the flow of the illegal drug fentanyl, remains in effect. Wednesday also marked the start of the new 54 per cent duty on small packages priced up to US$800. It was previously raised from 30 to 90 per cent, and then to 120 per cent. 'We believe that many manufacturers and exporters will seize the opportunity arising from the 90-day postponement to ship as many of their products as possible [to the US],' Gary Lau Ho-yin, chairman of the Hong Kong Association of Freight Forwarding and Logistics, said. 'I expect the big increase in export volume could come as early as next week.'
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:
