Aramex, a leading global provider of comprehensive logistics and transportation solutions, reported a strong performance in the last quarter of 2024, with revenue up 11% YoY to AED1.7 billion ($462.84 million) in Q4, bringing full-year revenue to AED6.3 billion ($1.715 billion), also up 11%. 

 

Gross profit was up 3% to AED399 million for Q4 2024, and up 6% to AED1.5 billion for the full year 2024 with a margin of 24%, benefitting from the topline growth.

 

Aramex ended the year with AED142 million in net profit, representing a growth of 10% in 2024 compared to 2023. For the Q4 2024 period, net profit was AED66 million, down from AED77 million reported during the same period last year.

 

The fiscal year growth was broad-based across all product lines with International and Domestic Express, Freight Forwarding and Contract Logistics all reporting YoY growth driven by higher shipment volumes and further gains in market share, the company said. 

 

Aramex is benefitting from emerging nearshoring trends as businesses increasingly streamline supply chains by positioning inventory closer to key markets. This shift fueled increased demand for Domestic Express and regional cross-border International Express, in addition to warehousing and fulfillment services. Aramex is well positioned to capitalise on this growing demand through its integrated solutions across its product portfolio, which plays a key role in shaping the company’s operational strategy, it said.

 

The GCC and MENAT regions remained pivotal, highlighting the strength of Aramex’s home markets. GCC and MENAT both grew double digit in revenue and gross profitability in 2024 compared to 2023.  Meanwhile, Oceania continued its turnaround journey, delivering almost 50% YoY growth in revenues and gross profitability in 2024. 

 

Annual Group Selling, General, and Administrative Expenses (SG&A) remained stable as a percentage of revenue at 19%, with a 4% YoY increase in absolute terms driven by selling expenses, and  reflecting the company’s strategic focus on topline growth. Despite cost inflation, General and Administrative expenses were well managed and remained at the same level as last year, which confirms management’s focus on cost controls.  

 

EBIT for the Q4 2024 period was AED89 million, representing a decline of 16% compared to Q4 2023. As a reminder, EBIT in Q4 2023 was positively boosted by a one-time settlement of approximately AED15 million.  For the full year period, EBIT grew 11% to AED297 million with a corresponding margin of 5%.

 

For the period ending December 31, 2024, the Effective Tax Rate (ETR) for the full year was 25%, as the company experienced an increase due to anticipated non-recurring items and also a change in the profit mix during the year, with more contributions from higher tax jurisdictions, it said.

 

The devaluation of foreign currencies, and in particular the devaluation of the Egyptian Pound from EGP 30.9/$ in Q4’23 to approximately EGP 49.8/$ for Q4'24 had a material and negative impact on the company’s financial results. Excluding the EGP devaluation impact, Q4 2024 Revenue was AED1.72 billion, gross profit was AED406 with a GP margin of 24% and net income was AED68 million. Excluding the EGP devaluation impact, FY 2024 revenue was AED6.4 billion, gross profit was AED1.53 billion with a GP% of 24% and net income was AED144 million, the company said. 

 

Othman Aljeda, Chief Executive Officer of Aramex, said: “We are pleased to conclude 2024 with double digit topline growth reflecting the continued momentum across our core business lines and market share gains across our key markets. We grew group revenues by 11% YoY, driving our gross profitability up by 6% YoY, resulting in a solid gross profit margin of 24%. Our focus on cost control and efficiencies helped deliver 11% YoY growth in EBIT and 10% YoY growth in net profit for the full year 2024. 

 

"A major industry shift this year has been the acceleration of nearshoring, with businesses repositioning inventory closer to their consumer markets to improve delivery speed and flexibility. Aramex has a clear competitive advantage to cater to this trend, thanks to its integrated solutions. We have gained significant volumes from several businesses that we have helped nearshore their stock in our key markets.  Domestic volumes were up 11%, international express volumes were up 20% and our contract logistics business is operating near full capacity. 

 

“What this means is that we are seeing more demand for local deliveries through our domestic express solutions, and a shift from long-haul cross border to shorter and intra-regional cross border activity through our international express product and trucking business. Our margin profile has adapted accordingly, while the business continues to grow at healthy levels in absolute terms.  Gross profitability for our consolidated international and domestic express product was up 8%. Our contract logistics product also grew gross profitability by 8% YoY, while freight forwarding was resilient with a 4% decline in gross profitability due to increasing competition and industry pricing pressure as well as cost inflation.

 

“Our diversified business model and disciplined cost management ensured financial stability despite macroeconomic challenges and increase in investments associated with our expansion strategy.

 

"Looking ahead, 2025 will be about smart, efficient growth—scaling our business while maintaining operational discipline and driving innovation across our network,” he said.- TradeArabia News Service