Aramex Q4 2024 Revenue Increases by 11% YoY

Aramex, a leading global logistics and transportation solutions provider, announced its audited financial results for Q4 and FY 2024, showcasing robust growth across its business lines.

Financial Highlights:

• Revenue Growth: Aramex reported an 11% year-over-year (YoY) increase in revenues, reaching AED 1.7 billion in Q4 2024 and AED 6.3 billion for the full year. This growth was driven by higher shipment volumes and market share gains across International and Domestic Express, Freight Forwarding, and Contract Logistics.
• Gross Profit: Gross profit rose 3% YoY to AED 399 million in Q4 and 6% YoY to AED 1.5 billion for the full year, with a margin of 24%. The increase was supported by topline growth and stable selling, general, and administrative expenses.
• Net Profit: Aramex achieved a net profit of AED 142 million for FY 2024, a 10% increase from 2023. Q4 net profit was AED 66 million, down from AED 77 million in Q4 2023, impacted by currency devaluation, particularly the Egyptian pound.

Regional Performance:

• GCC and MENAT Regions: These regions remained pivotal, with double-digit growth in revenue and gross profitability. Oceania also showed significant improvement, with nearly 50% YoY growth in revenues and gross profitability.

Product Performance:

• International Express: Revenues fell 6.2% YoY to AED 615.1 million in Q4 2024 due to nearshoring trends. However, FY 2024 revenues grew 5% YoY, with shipment volumes increasing by 20%.
• Domestic Express: This segment saw strong performance, with Q4 revenues up 33% YoY to AED 480.7 million and full-year revenues up 18% YoY. Shipment volumes grew 17% YoY in Q4 and 11% YoY for the full year.
• Freight Forwarding: Revenues increased 21% YoY to AED 464.5 million in Q4 2024 and 15% for the full year, driven by volume gains. However, the gross profit margin declined due to competition and pricing pressure.
• Contract Logistics: Revenues rose 11% YoY to AED 122.7 million in Q4 2024, supported by new clients and expanded warehousing. Full-year revenues grew 6% to AED 455.3 million.

Strategic Insights:
Aramex is capitalizing on nearshoring trends, which have increased demand for Domestic Express and regional cross-border International Express services. The company’s integrated solutions and strategic focus on cost control and efficiency have positioned it well to meet growing market demands.

CEO Commentary:
Othman Aljeda, CEO of Aramex, highlighted the company’s double-digit topline growth and strategic advantages in catering to nearshoring trends. He emphasized the focus on smart, efficient growth and innovation for 2025, aiming to scale the business while maintaining operational discipline.

Outlook:
Looking ahead, Aramex plans to continue leveraging its diversified business model and disciplined cost management to ensure financial stability and capitalize on emerging market opportunities. The company remains committed to enhancing its margin stability and profitability profile in 2025.