Aramex (DFM: ARMX) a leading global provider of comprehensive logistics and transportation solutions, announced its financial results for the second quarter (Q2) and first half (H1) ending 30th June 2023.
Demonstrating resilience and remaining profitable in the face of weak market conditions including FX headwinds, Aramex reported revenues of AED 2.8 billion in H1 2023, a 5 percent decline YoY. In line with the global industry trend of softening volumes, the Q2 2023 revenue also declined by 8 percent. However, excluding the currency exchange impact, the Q2 revenue fell by 5 percent.
Aramex maintained a robust gross profit margin of 25 percent over both the half year and second quarter periods, despite a 3 percent and 9 percent YoY reduction in gross profit for H1 and Q2 2023 respectively. This tenacity reflects Aramex’s consistent investments in efficiency-maximizing initiatives and cost optimization strategies, enabling the Company to navigate economic cycles with strength.
Net profit of AED 42.8 million was reported in the first half of 2023, compared to AED 91.9 million in H1 2022, with a similar decline of 57 percent for Q2 2023. This decrease is attributed to a trickle-down impact from topline softening, as well as an increase in finance expenses associated with the MyUS acquisition, which is in line with Company’s strategy to leverage the balance sheet.
Aramex maintained a robust balance sheet position with Net Debt-to-EBITDA ratio of 2.6x and a healthy cash balance of AED 502 million as of 30 June 2023.
International Express business reported AED 372 million in Gross Profit for H1 2023, a YoY increase of 1 percent.
Othman Aljeda, Chief Executive Officer of Aramex, said:
“Reflecting on Aramex’s financial results for the first half of 2023, we performed robustly, despite continued challenges in an environment characterised by cost inflation, lower freight rates, softening shipment volumes and FX fluctuations. Therefore, our focus in the second half of the year will remain firmly on cost reduction and further efficiencies on Operating Expenses and SG&A, so that we can continue to be a very well-positioned, disciplined and agile business, with a strong balance sheet and key competitive strengths for the long-term.''
News Source: Emirates News Agency