Aramex today announced its financial results for the first quarter ending 31st March 2024, with net profit nearly doubling, reaching AED47 million, marking two consecutive quarters of strong performance. The net profit margin improved to 3%.
In a recent statement, the company announced an 8% year-on-year increase in group revenues, driven by robust performance across all product lines. International Express showed exceptional growth, with a 44% increase in volume and a 14% revenue surge compared to Q1 2023. Domestic Express and Freight Forwarding also demonstrated resilience, growing by 5% and 3% respectively. Despite challenges in Egypt's currency devaluations, Logistics and Supply Chain Solutions maintained stability. Effective management of expenses resulted in a modest 4% YoY increase in Selling, General, and Administrative Expenses. Aramex maintains a strong balance sheet with a low Net Debt-to-EBITDA ratio and a healthy cash balance of AED571 million as of March 31, 2024, alongside improved working capital and record-low DSOs.
Othman Aljeda, CEO of Aramex, highlights the significant volume growth in Q1 2024, particularly in International Express and Domestic Express, driven by new customer acquisitions and seasonal demand during Ramadan. Freight forwarding experienced double-digit volume growth across land, sea, and air, while Logistics and Warehousing activities supported efficient logistics and fulfillment in key markets.
Aljeda praises the team's performance and attributes success to their dedication and capability in handling increased volume and consumer activity while maintaining high service levels. He emphasizes ongoing investments in automation and operational optimization, ensuring an agile network responsive to customer needs and market dynamics. Technologies like last-mile route optimization enhance operational efficiency, facilitating effective growth management.
Aljeda anticipates continued volume growth in Q2 and Q3 2024, albeit softer compared to peak seasons, while maintaining a focus on cost management and profitable growth. The company remains committed to delivering quality service and enhancing operational efficiency to meet stakeholders' evolving needs in the long term.
News Source: Emirates News Agency
