Aramex Achieves Robust Growth in FY 2024
Aramex PJSC reports double-digit revenue growth for FY 2024, driven by consistent volume growth across key products.
Summary
Aramex PJSC has reported an 11% year-on-year revenue growth for FY 2024, driven by strong performance across its product lines. The company's strategic focus on integrated solutions and regional expansion contributed to its success. Despite challenges such as currency devaluation, Aramex maintains a robust financial position, indicating a promising future.
Aramex PJSC, a leading logistics and transportation solutions provider, has announced impressive financial results for the fiscal year 2024. The company reported an 11% year-on-year increase in revenues, reaching AED 6.3 billion, driven by consistent volume growth across its key product lines, including Consolidated Express, Freight Forwarding, and Logistics.
Gross profit for the year grew by 6% to AED 1.5 billion, with a stable gross profit margin of 24%. Notably, the company's net profit rose by 10% to AED 142 million, reflecting improved profitability despite a decline in freight forwarding margins.
Regionally, Aramex saw double-digit growth in both revenue and gross profitability in the GCC and MENAT regions. Oceania also showed remarkable progress, delivering nearly 50% year-on-year growth in both metrics. This regional strength underscores Aramex's strategic focus on expanding its footprint and capitalizing on growth opportunities across different markets.
Aramex's success is further bolstered by its integrated solutions, which have become increasingly important as businesses streamline supply chains and position inventory closer to key markets. This nearshoring trend has led to increased domestic express, intra-regional cross-border express activity, and warehousing and fulfillment services, positioning Aramex to capitalize on growing demand.
The company continues to invest in technology and automation to enhance efficiencies and unlock additional value. With a robust financial position, including a cash balance of AED 513 million and a Debt to EBITDA ratio of 2.9X, Aramex is well-equipped to navigate future challenges and opportunities.
However, the devaluation of foreign currencies, particularly the Egyptian pound, had a material impact on financial results. Excluding this impact, Q4 2024 revenues would have been AED 1.72 billion, with a net income of AED 68 million. This highlights the importance of managing foreign exchange risks as part of the company's financial strategy.
Overall, Aramex's strong financial performance and strategic initiatives indicate a promising future. Investors may consider a 'buy' position, given the company's robust growth trajectory and focus on innovation and regional expansion.
Source
Summary
Aramex reported an 11% year-over-year increase in revenue for both the fourth quarter and full year 2024, reaching AED 6.3 billion and AED 1.7 billion, respectively. This growth was attributed to strong performance across its product lines, including Express, Freight Forwarding, and Logistics. The company's gross profit rose by 3% in Q4 and 6% for the year, with a gross profit margin of 24%. Net profit for the year increased by 10% to AED 142 million. The GCC and MENAT regions showed double-digit growth, while Oceania experienced nearly 50% growth in revenue and gross profitability. Aramex benefited from a trend towards nearshoring, which boosted domestic express and cross-border activity. The company continues to invest in technology and automation to enhance efficiency and value. Aramex maintained a strong financial position with a cash balance of AED 513 million and a debt-to-EBITDA ratio of 2.9x. The devaluation of foreign currencies, particularly the Egyptian pound, impacted financial results. Excluding this impact, full-year revenue was AED 6.4 billion, with a net income of AED 144 million.
