Aramex quarterly profit surges 817% as revenue hits record Dh1.98 billion

Dubai-based logistics firm Aramex announced a dramatic 817% surge in net profit for its latest quarter, reaching Dh47.8 million. Revenue for the period hit a record Dh1.98 billion, marking the second consecutive quarter exceeding the Dh1.83 billion mark set in the previous three months. The company's overall revenue increased 24% to Dh1.98 billion, making it the highest quarterly revenue of the past two quarters.

Freight forwarding remained Aramex's primary driver of growth, with its revenue reaching another all-time high, driven by sustained customer demand, pricing discipline, and the company's ability to transport shipments via multiple modes of transportation, including air, sea, and land. Aramex successfully maintained services during the quarter by utilizing alternative land routes between Europe and the Middle East, along with air and sea charter capacity, which provided customers with additional transport options.

Despite the impressive revenue and earnings growth, Aramex reported a decline in gross profit margins, attributable to the increasing contribution from freight forwarding, which altered the overall revenue mix. Gross profit rose 12% to Dh415.1 million, but the gross profit margin narrowed to 21% from 23.2% a year earlier. Earnings before interest, tax, depreciation, and amortization (EBITDA) increased by 16% to Dh189.8 million, although the EBITDA margin decreased to 9.6% from 10.2%.