UAE logistics company Aramex has reported a 95% increase in net profit to Dh46.5 million for the first quarter of 2024, compared to the Dh23.9 million reported over the same period in 2023.
Aramex’s growth was a result of an 8% increase in revenues to Dh1.5 billion, driven by “new customer wins, seasonality and the company’s increased focus on sales specialism’.
The company’s international express business recorded a 44% growth year-on-year (YoY), while the domestic express and freight forwarding lines turned in revenue growths of 5% and 3% YoY respectively.
“Logistics and supply chain solutions maintained a stable performance in Q1-2024, despite the challenges associated with currency devaluations in Egypt which negatively,” the company said in a statement to the Dubai Financial Market, where its shares are traded.
During the first quarter of 2024, Aramex’s gross profit margin stood at 26%, marking a 70-bps improvement from the same period the previous year. Meanwhile, the EBITDA margin increased by 110 bps to 12% compared to Q1 of 2023.
This year, Aramex will also focus on debt repayment of around $50 million to $70 million.
“We will also maintain capex at similar levels to last year, to continue investments in critical projects such as warehouse expansion, automations and technology rollout,” said Othman Aljeda, CEO.
“We will continue to manage our cost base and SG&A (selling, general and admin expenses) to ensure profitable growth. Our focus remains on working towards our long-term ambition, which involves delivering quality service and enhancing our operational efficiency to meet the evolving needs of all our stakeholders.”
In 2023, Aramex reported a 22% decline in net profit to Dh129.29 million, compared to the Dh165.37 million it recorded in 2022.