Aramex reported double-digit net profit growth in the first half of 2024, despite seasonal challenges. The company saw significant year-over-year volume growth in both International Express (32%) and Domestic Express (5%), expanded its customer base, and maintained service levels. Freight Forwarding grew in volumes despite increased rates and competition, while Logistics onboarded new customers, replacing legacy accounts.
Revenue grew by 8% year-over-year for both H1 and Q2 2024, driven by new customer wins and volume growth. The company managed costs effectively, maintaining a stable SG&A-to-revenue ratio of 20%, an improvement of 0.7 percentage points over H1 2023. Gross profit increased by 5% year-over-year with a gross profit margin of 24%, and net profit rose by 15% year-over-year, driven by a 20% growth in EBIT and an improved EBIT margin.
For the full year 2024, Aramex expects to sustain growth across key product lines, with estimated group revenue growth of 8% to 9% and a gross profit margin of 24% to 25%. The company plans to continue strategic investments in infrastructure and talent.
Aramex's balance sheet remains strong with a cash position of AED 457 million and a Net Debt-to-EBITDA ratio of 0.9x as of June 30, 2024. The company's return on invested capital improved by 40 basis points to 5.2% for H1 2024.
Financial highlights for Q2 and H1 2024 include:
- Q2 2024 revenues: AED 1,496,254 (up 8% YoY)
- H1 2024 revenues: AED 3,036,955 (up 8% YoY)
- Q2 2024 gross profit: AED 345,131 (no change YoY)
- H1 2024 gross profit: AED 740,532 (up 5% YoY)
- Q2 2024 EBIT: AED 46,962 (down 11% YoY)
- H1 2024 EBIT: AED 139,369 (up 20% YoY)
- Q2 2024 EBITDA: AED 134,930 (down 6% YoY)
- H1 2024 EBITDA: AED 316,104 (up 7% YoY)
- Q2 2024 net profit: AED 2,893 (down 85% YoY)
- H1 2024 net profit: AED 49,458 (up 15% YoY)