Aramex records robust financial growth in H1 of 2024
Date
8/11/2024 4:34:20 AM
(MENAFN) Aramex, a company listed on the Dubai financial Market, announced a significant 15 percent year-on-year increase in net profit, reaching AED 49.5 million (approximately USD13.5 million) during the first half of 2024. This growth was largely fueled by a 20 percent rise in earnings before interest and taxes (EBIT), accompanied by an improvement in the EBIT margin. The company highlighted in its press release that this positive performance was supported by robust contributions from all major business sectors, resulting in an 8 percent year-on-year increase in group revenues. Key factors behind this revenue growth include the acquisition of new customers and a strategic emphasis on sales specialization.
The company's strong performance during the first half of the year was particularly evident in the international express shipping sector, where the number of shipments surged by 32 percent, and in the domestic express shipping sector, which saw a 5 percent increase. Additionally, the shipping services sector also experienced consistent growth in shipment volumes, further contributing to the overall success of Aramex. As a result, the company recorded a 5 percent year-on-year increase in gross profit for the first half of 2024, totaling AED 741 million. However, gross profit remained stable at AED 345 million during the second quarter, reflecting the company's ability to sustain its profitability amidst a competitive market environment.
Aramex's financial stability was further underscored by its achievement of a 24 percent profit margin during the first half of 2024 and a 23 percent margin in the second quarter. The company also maintained a strong cash position, with a balance of AED 457 million as of June 30, 2024, and a net debt ratio of 0.9 times EBITDA. Management's focus on value creation led to an improvement in the return on investment (ROI) by 40 basis points, bringing it to 5.2 percent for the first half of the year. This strong financial performance highlights Aramex's effective strategy in navigating market challenges and capitalizing on growth opportunities.
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