Aramex H1: We expanded our customer base and delivered solid volume growth

Aramex has announced its financial results for the second quarter and first half ending 30 June 2024, revealing double-digit net profit growth in H1 2024 despite seasonal challenges.

Financial highlights 

• Both International Express and Domestic Express achieved significant year-over-year (YoY) volume growth of 32% and 5% respectively, expanding our customer base while maintaining good service levels in the first half of the year (H1 2024). Freight Forwarding navigated a complex environment, marked by increased rates and competition, achieving growth in volumes in H1 2024, as it focuses on consolidating its position on key lanes. Logistics onboarded several new customers during the first months of the year, effectively replacing legacy accounts.
  

• Aramex achieved a robust 8% YoY increase in revenue for both H1and Q2 2024, driven by revenue growth from all products lines. The revenue performance in the first half of the year is attributed to new customer wins and volume growth.

• The Company maintained a tight control over Group Selling, General, and Administrative Expenses (SG&A), with costs growing in line with revenue in H1 2024. Selling expenses increased in line with the company’s strategy to focus on sales specialism, while G&A were well managed, delivering a stable SG&A-to-revenue ratio of 20%, an improvement of 0.7 pps over H1 2023.

• The first six months of the year saw a solid 5% YoY increase in Gross Profit, with a healthy Gross Profit Margin of 24%amid ongoing efficiency maximization and cost optimization efforts. Net profit showed a steady rise of 15% YoY in H1 this year, driven by a 20% growth in EBIT and an improved EBIT margin, indicating strong operational performance despite Q2 2024 impact.

• 2024 Full Year Outlook: Aramex is poised to sustain its growth momentum across key product lines in the second half of the year and is expected to deliver a good performance for the full year 2024 with an estimated growth of 8% to 9% in Group Revenues and an approximate Gross Profit Margin of 24% to 25%. The company will continue its strategic investments in infrastructure and talent to broaden its customer base and prioritize exceptional service, keeping it on course to meet year-end targets.
• Aramex continues to be well-positioned with a cash position of AED 457 million and a Net Debt-to-EBITDA ratio of 0.9x (excl. IFRS16) as of 30 June 2024. Management’s focus on value creation delivers 40 basis points improvement in ROIC, currently standing at 5.2% for H1 2024.
  

Othman Aljeda, Chief Executive Officer of Aramex, said: “We are pleased to report a good performance in the first half of 2024, which underscores our strategic focus on growth. We delivered a healthy revenue growth of 8% YoY and a Net Profit increase of 15% YoY in H1 2024, despite a challenging Q2 2024.

”We are proud of the dedication and hard work of our Aramexians, spearheading this robust performance. We expanded our customer base and delivered solid volume growth across our product lines, reinforcing our stronghold and leadership position in our key markets. Both International Express and Domestic Express achieved significant volume growth while maintaining strong service standards. Freight Forwarding navigated a complex operating environment, delivering good growth in volumes for the first half of the year. Our Logistics business successfully onboarded new customers in its warehouses during H1 2024 and replaced legacy accounts.

“We are monitoring the regional developments and Red Sea complexities closely. Despite the recent global macroeconomic headwinds and the regional disruptions, we are robustly positioned to deliver resilient performance in the second half of the year and achieve our year-end targets.”

”We remain committed to demonstrating the resilience and adaptability of our strategies to market dynamics and creating long-term value for our stakeholders. We will continue our investments in critical projects, ensuring we are well-prepared to capitalize on growth opportunities. Looking ahead, we are confident in our ability to deliver quality service and enhance operational efficiency to meet the evolving needs of all our customers.”