ARAMEX PJSC

Aramex reported stable revenues in Q1 2023, with revenues totaling AED 1.43 billion, a slight decrease of 1% YoY. Despite global headwinds and a softening of global shipment volumes, the company managed to outperform its global peers. The gross profit increased by 4% YoY to AED 358 million, driven by growth in the International Express business and the acquisition of MyUS. However, EBITDA decreased by 9% to AED 153 million, and net profit was AED 24 million, compared to AED 47 million in Q1 2022 due to several factors including currency devaluation and interest expenses associated with the MyUS acquisition. The Freight-Forwarding and Logistics and Supply Chain Solutions Businesses saw increases in gross profit, while Domestic Express declined due to FX impact. Despite inflationary pressures, the company managed to keep SG&A expenses stable. Aramex also reported a healthy cash balance and low leverage, with a net debt-to-EBITDA ratio of 2.3x.