Aramex delivers robust 8% revenue growth for H1
DUBAI, August 8, 2024
Aramex, a global provider of comprehensive logistics and transportation solutions, has witnessed strong revenue contribution from all products with revenue growing by 8% YoY in H1 2024 driven by new customer wins and an increased focus on sales specialism.
Announcing its financial results for the six-month period ended June 30, 2024, Aramex said its net profit remained on an upward trajectory, reaching AED 49.5 million, thus posting a significant 15% year-on-year (YoY) increase, driven by a growth in EBIT and an improved EBIT margin.
The performance was further supported by impressive volume growth of 32 percent in International Express, 5 percent in Domestic Express along with strong growth in freight volumes in H1 2024. Revenue performance in Q2 2024 maintained positive momentum, also recording an 8 percent increase, compared to Q2 2023.
The company posted an increase of 5 percent YoY in Gross Profit in H1 2024 to AED 741 million, and a stable Gross Profit of AED345 million in Q2 2024.
The Gross Profit margin was healthy at 24 percent in H1 2024 and at 23 percent in Q2 2024, said Aramaex in a statement.
Aramex maintained a strong cash position of AED457 million and a net debt-to-ebitda ratio of 0.9x as of 30th June 2024. Management’s focus on value creation delivers 40 basis points improvement in ROIC, currently standing at 5.2 percent for H1 2024.
On the solid performance, CEO Othman Aljeda said: "We are pleased to report a good performance in the first half of 2024, which underscores our strategic focus on growth."
''We remain committed to demonstrating the resilience and adaptability of our strategies to market dynamics and creating long-term value for our stakeholders," he stated.
On its future outlook, Aljeda said: "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," he added.-TradeArabia News Service
