Aramex reports revenue of Dhs4.39bn for the first nine months of 2022

Aramex announced its financial results for Q3 and the first nine months of the year ending September 30.

For the first nine months, revenue reached Dhs4.39bn, relatively unchanged from the Dhs4.46bn reported for the same period last year.

The company’s solid performance in freight forwarding was offset by the “softness” of the courier offering, which it attributed to lower volumes in Oceania and North Asia. Revenue was also impacted by the devaluation of currencies in certain markets.

The gross profit margin for the group was 22.5 per cent in Q3 2022 and 23.8 per cent for the nine-month period. The courier gross profit margin was stable at 30 per cent in Q3 2022, and it is important to note that the ‘Shop & Ship’ product delivered the highest gross profit margin since Q1 2021.

Freight forwarding delivered a two-point improvement in gross profit margin to 14 per cent in the first nine months of the year 2022, while logistics was impacted by one-offs associated with the restructuring of this product which is expected to be completed by end of 2022.

The company reported that despite inflationary pressures, the earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin, for the nine-month period, was solid at 10.6 per cent, driven its cost optimisation initiatives. 

In Q3 2022, net profit from continuing operations increased 18 per cent YoY to Dhs37 million. Net profit from discontinued operations includes profits incurred in Q3 2021 from InfoFort sale last year.

The company said its strong balance sheet will support its growth strategy including investments in digital and technological infrastructure as well as its active M&A pipeline.

Othman Aljeda, CEO of Aramex, said: “The strength and resilience of the GCC economies contributed to the stability of our top line year to date in 2022. In line with our strategic objectives, our revenue mix is now more diversified both in terms of contributions from the different business segments and from a more diverse customer base. Our diversified customer base has further reduced concentration risk, with our top customer currently contributing 7 per cent of the group’s total revenue.

“The courier business remained resilient with a stable gross profit margin of 30 per cent, supported by initiatives to improve operational efficiencies and the successful rollout of same-day deliveries and other premium services in the GCC. The freight-forwarding business continues to be our strong performer, registering double-digit growth in both the three-month and nine-month periods. Q4 2022 marks the first quarter that we are consolidating MyUS, a global technology-driven platform that enables cross-border e-commerce, into Aramex operations, and we look forward to unlocking further value over the long term through revenue and cost synergies.”

Read: Aramex completes acquisition of cross border e-commerce platform, MyUS