Aramex doubles net profit in Q1 2024

DUBAI: Aramex announced its financial results for the first quarter ending March 31, 2024, with net profit nearly doubling, reaching Dhs47 million, marking two consecutive quarters of strong performance. The net profit margin improved to 3 per cent.

In a statement on Friday, the company reported an 8 per cent year-on-year (YOY) increase in group revenues, with strong contributions from all product lines reflecting the strength of its diverse portfolio.

International Express emerged as a key driver, delivering remarkable volume growth of 44 per cent in Q1 this year compared to the same period in 2023, leading to a revenue increase of 14 per cent YOY.

Domestic Express and Freight Forwarding were resilient, with revenue growing by 5 per cent and 3 per cent YOY, respectively. Logistics and Supply Chain Solutions maintained a stable performance in Q1 2024 compared to the same period last year, despite the challenges associated with currency devaluations in Egypt, which negatively impacted revenues.

Effective management of the Group’s Selling, General, and Administrative Expenses (SG&A) saw a modest 4 per cent YOY increase in Q1 this year, primarily attributed to increased selling expenses, as well as annual employee compensation adjustments.

Aramex maintained a strong balance sheet position with Net DEBT-TO-EBITDA excl. IFRS16 ratio of 0.8x and a healthy cash balance of Dhs571 million as of 31 March 2024.