Aramex Achieves Robust Q3 Revenue Growth
Aramex PJSC reports impressive double-digit revenue growth in Q3 2024, driven by strong performance across all product lines.
Summary
Aramex PJSC has reported a remarkable 18% year-on-year revenue growth in Q3 2024, with significant contributions from all product lines, positioning the company for a strong year-end performance.
Aramex PJSC, a leading global provider of logistics and transportation solutions, has delivered an impressive financial performance for the third quarter (Q3) of 2024. The company reported an 18% year-on-year increase in revenue, reaching AED 1.59 billion. This robust growth was fueled by strong performances across all its product lines: International Express, Domestic Express, Freight Forwarding, and Logistics & Supply Chain Solutions.
The International Express segment saw a 10% year-on-year increase in revenue, supported by a 34% surge in volumes. This growth was largely driven by the rising demand for premium services and cross-border e-commerce. Meanwhile, Domestic Express achieved a remarkable 27% revenue growth, with volumes increasing by 18%, highlighting strong consumer activity in home markets.
Freight Forwarding also experienced significant gains, with a 22% rise in revenue, particularly in air and land freight. This was attributed to businesses leveraging Aramex's reliable network for seamless trade. The Logistics & Supply Chain Solutions segment grew by 13%, operating close to full capacity due to new customer acquisitions.
Despite challenges in the operating environment, Aramex's gross profit increased by 11% year-on-year to AED 373 million, though the gross profit margin softened to 23%. The company remains on track to deliver a strong performance for the full year 2024, with projected revenue growth of approximately 9%.
Aramex's balance sheet remains strong with a cash position of AED 447 million and a Net Debt-to-EBITDA ratio of 2.1x as of September 30, 2024. The company's focus on value creation has resulted in a 20 basis points improvement in ROIC, currently standing at 5%.
Given the company's solid financial performance and strategic positioning in the logistics and transportation sector, the future outlook for Aramex appears optimistic. Investors may consider holding their positions as the company continues to demonstrate growth and resilience in a competitive market.
Source
Summary
Aramex reported strong financial results for the third quarter of 2024, with an 18% year-on-year increase in revenue to AED 1.59 billion. For the first nine months of 2024, revenue rose by 11% to AED 4.63 billion, driven by growth across all product lines: International Express (10% YoY), Domestic Express (27% YoY), Freight Forwarding (22% YoY), and Logistics & Supply Chain Solutions (13% YoY). The company saw consistent volume growth, with International Express volumes up 34% and Domestic Express volumes up 18%. Gross profit for Q3 rose 11% YoY to AED 373 million, though the gross profit margin decreased to 23%. Aramex projects a full-year revenue growth of approximately 9% and expects gross profit margins to remain between 24% and 25%. The company maintains a strong balance sheet with a cash position of AED 447 million and a Net Debt-to-EBITDA ratio of 2.1x. Net profit for Q3 increased by 177% YoY to AED 26.7 million.
