Aramex Q4 2024 Revenue Increases by 11% YoY

 Aramex a leading global provider of comprehensive logisticsand transportation solutions, today announced its audited financial results for the Fourth Quarter (“Q4’’) and Full Year (“FY’’) ending 31 December 2024.

Financial Performance Commentary

Aramex reported a strong performance in the last quarter of 2024, with revenue up 11% YoY to AED 1.7 billion in Q4, bringing full-year revenue to AED 6.3 billion—also up 11%. 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.

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 capitalize on this growing demand through its integrated solutions across its product portfolio, which plays a key role in shaping the company’s operational strategy.

GCC and MENAT Regions

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.

Gross profit was up 3% to AED 399 million for Q4 2024, and up 6% to AED 1.5 billion for the full year 2024 with a margin of 24%, benefitting from the topline growth. 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 AED 89 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 AED 15 million.  For the full year period, EBIT grew 11% to AED 297 million with a corresponding margin of 5%.

Aramex Effective Tax Rate

For the period ending December 31^st 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.

Aramex ended the year with AED 142 million in net profit, representing a growth of 10% in 2024 compared to 2023. For the Q4 2024 period, net profit was AED 66 million, down from AED 77 million reported during the same period last year.

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 AED 1.72 billion, Gross Profit was AED 406 with a GP margin of 24% and Net Income was AED 68 million. Excluding the EGP devaluation impact, FY 2024 Revenue was AED 6.4 billion, Gross Profit was AED 1.53 billion with a GP% of 24% and Net Income was AED 144 million.

Double Digit Topline Growth

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.”

Aramex Product Performance

International Express (Including Parcel Forwarding)

International Express Shipment Volumes

Q4 2024 International Express revenues fell 6.2% YoY to AED 615.1M due to nearshoring; impact expected into 2025.

The FY 2024 performance remained robust at 5% revenue growth compared to FY 2023, with shipment volumes increasing by 20% to 28 million.

Gross profit declined 14% in Q4 2024 to AED 194.9 million and was stable at AED 780.8 million for the full year period. The gross profit margin declined from 34% to 32% for both the quarter and the full year, due to changes in customer profile and trade lanes adjustments with less long-haul and more cross-border activity taking place intra region in GCC and MENAT, reflecting the nearshoring trend.

Read: Aramex Launches Self-Service Kiosk in Dubai

Domestic Express

Domestic Express Shipment Volumes

Our Domestic Express product delivered a strong performance with both revenues and volumes reporting double-digit growth in Q4 as well as the full year, underscoring the growing preference for local and regional logistics.

Revenues for the fourth quarter climbed 33% YoY to AED 480.7 million and 18% YoY to AED 1.7 billion for the full year period. Growth is driven by strong volume growth of 17% YoY in Q4 2024 to 31.0 million, with full-year volumes growing 11% YoY to 111.3 million. Growth is attributed to volume flows from international express, as well as significant volume growth from new and existing domestic express customers.  Robust performance was reported from Oceania too, with both revenues and gross profitability increasing almost 50% YoY in 2024 on the back of the strategic actions and network consolidation implemented last year.

Gross profit for Q4 2024 increased by 45% YoY to AED 113.6 million with a margin of 24%.

Full-year gross profit rose 27% to AED 398.4M, margin up 200 basis points to 24%, aided by nearshoring.

EGP devaluation impacted the financial profile of the Domestic Express Product.

Excluding the impact of the EGP, Contract Logistics generated a Q4 2024 revenue of AED 487 million and a gross profit of AED 116 million, achieving a gross profit margin of 24%.

Aramex Freight-Forwarding

Freight-Forwarding Shipment Volumes

Freight Forwarding revenues rose 21% YoY to AED 464.5M in Q4 2024, 15% FY 2024, from volume gains.

The product’s gross profit margin declined in the quarter and year due to rising competition and pricing pressure.

Corporate initiatives are underway to enhance margin stability and build a stronger profitability profile for 2025.

Contract Logistics

Contract Logistics revenues rose 11% YoY to AED 122.7 million in Q4 2024, driven by new clients and expanded warehousing.

Full year revenues also grew by 6% in 2024, to AED 455.3 million.

Gross profit stayed at AED 21.0 million with a 17% margin in Q4 2024; full-year margin was 15%.

The devaluation of the Egyptian pound impacted Contract Logistics due to currency exchange fluctuations.

Excluding the EGP impact, Contract Logistics generated AED 128M in revenue and AED 23M in gross profit in Q4 2024, achieving an 18% margin.

Contract Logistics remains a core pillar of Aramex’s growth strategy, supporting the industry’s shift toward regionalized supply chains.