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- Through persistent global challenges, inflationary environment and currency fluctuations, Aramex delivered a robust Revenue of AED 1.35 billion in Q3 2023, a decline of 5% Year-on-Year (YoY) and a resilient Gross Profit of AED 335 million, a growth of 4% YoY. Excluding the foreign exchange translation impact, Revenue decline was 2% and Gross Profit growth was 8%.
- Aramex's strategically balanced geographical presence continues to be an advantage; the GCC remains the highest contributor to Group revenues with a share of 40% of total revenues, with the region also reporting 21% growth YoY in its Gross Profit in Q3 2023.
- The Company reported robust margin performance with Gross Profit margin increasing to 25% and a stable EBITDA margin of 10%.
- EBITDA reached AED 134 million, a decline of 5% YoY in line with Revenue softness indicating the continued focus on quality business, disciplined cost management and investment in operational efficiencies.
- The Company's prioritization of cost management is also evidenced by the notable 9% decline in the Group’s organic (excl MyUS) General, and Administrative Expenses (G&A) in Q3 2023. Notably, selling expenses for the organic business increased during the quarter, in line with the Company’s strategy to increase sales competencies in key verticals across key markets.
- Reported Net Income declined to AED 9.6 million for the Q3 2023 reporting period, largely led by the steep increase in interest rates since the MyUS acquisition. Net income normalized for the FX impact and the increase in finance expense loans following the acquisition of MyUS transaction stood at AED 30.4 million in Q3 2023, a decline of 23% YoY.
- Aramex's International Express segment achieved steady growth, posting a 4% YoY increase in revenue, despite the softness in volumes. The Domestic Express business was resilient both on a YoY and sequential basis. Despite industry headwinds, our focus on Freight-Forwarding delivered strong margins and for our logistics business, we continue to reposition it with increase in quality revenue from strategic sectors.
Dubai, UAE : Aramex (DFM: ARMX), a global leader in comprehensive logistics and transportation solutions, today released its financial results for the third quarter of the year ending September 30, 2023.
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About Aramex:
Aramex, established 40 years ago, has emerged as a global leader in logistics and transportation, renowned for its innovative services tailored to businesses and consumers. As a listed company on the Dubai Financial Market (DFM) and headquartered in the UAE, our strategic location facilitates extensive customer reach worldwide, bridging the gap between East and West.
With operations in 600+ cities across 70+ countries, Aramex employs over 16,000 professionals. Our success is attributed to four distinct business products that provide scalable, diversified, and end-to-end services for customers. These products are:
- International Express, encompassing Aramex's Parcel Forwarding Business (Shop & Ship and MyUS).
- Domestic Express
- Freight Forwarding
- Logistics & Supply Chain Solutions
Sustainability is at the core of our vision and mission. To build a truly sustainable business, we leverage our core competencies to make a positive impact as responsible members of the communities we serve. Through partnerships with local and international organizations, we strive to expand our reach and benefit more individuals through targeted programs and initiatives. To address environmental concerns and combat climate change, we have committed to the Science Based Targets initiative (SBTi), renowned globally. This commitment propels us to accelerate our climate action goals, aiming for Carbon-Neutrality by 2030 and Net-Zero emissions by 2050.
For more information, please visit us: www.aramex.com