Aramex Reports Stable Revenue of AED 4.39 Billion
for the First Nine Months of 2022
• Resilient GCC economies underpinned Group revenue growth
• Outstanding performance of the Freight-Forwarding business, attributable to
increased volumes from Industrials, Retail, and SME verticals
• Stable gross profit margin in Courier business, driven by operational efficiencies
and introduction of premium offerings and same-day deliveries
• Robust balance sheet, conservative leverage, and strong cash position support
expansion and M&A plans and investments in digital and tech infrastructure
• Aramex completed the acquisition of MyUS and expects to add approximately
AED 110.2 million EBITDA in Full Year 2023
Dubai, UAE – Thursday, 10th November 2022: Aramex (DFM: ARMX) a leading global
provider of comprehensive logistics and transportation solutions, today announced its
financial results for the third quarter (“Q3”) and nine months (“9M”) ending 30 September
2022.
Yo Y Yo Y
In Thousands of AED Q3 2022 Q3 2021 9M 2022 9M 2021
Cha nge Change
Revenue 1,426,250 1,461,404 (2%) 4,391,771 4,457,261 (1%)
Gross Profit 320,827 356,080 (10%) 1,043,550 1,103,391 (5%)
Gross Profit Margin 22.5% 24.4% (1.9pp) 23.8% 24.8% (1pp)
EBITDA 141,357 163,134 (13%) 465,559 525,687 (11%)
EBITDA Margin 9.9% 11.2% (1.3pp) 10.6% 11.8% (1.2pp)
Net Profit from Continuing
36,931 31,350 18% 128,018 132,425 (3%)
Operations
Net Profit Margin from
2.6% 2.1% 0.5pp 2.9% 3.0% (0.1pp)
Continuing Operations
Net Profit including
39,643 67,815 (42%) 131,514 179,294 (27%)
Discontinued Operations
Net Profit Margin including
2.8% 4.6% (1.8pp) 3.0% 4.0% (1pp)
discounted operations
Group Financial Performance Highlights
• 9M 2022 Revenue reached AED 4.39 billion, relatively unchanged from the AED 4.46
billion reported in 9M 2021. The solid performance in Freight Forwarding was offset by the
softness in the Courier offering, which is attributed to lower volumes in Oceania and North
Asia. Revenue was also impacted by the devaluation of currencies in certain markets.
• GP margin for the Group was 22.5% in Q3 2022 and 23.8% for the nine-month period. The
Courier GP margin was stable at 30% in Q3 2022, and it is important to note that the Shop
& Ship product delivered the highest GP margin since Q1 2021. Freight Forwarding
delivered a 2-point improvement in GP margin to 14% in the first nine months of the year2022, while Logistics was impacted by one-offs associated with the restructuring in this
product which is expected to be completed by end of 2022, as the Company remains
focused on quality revenue customers only.
• Despite inflationary pressures, 9M 2022 EBITDA margin was solid at 10.6%, driven by the
Company’s cost optimization initiatives. Aramex’s disciplined approach to cost
management lowered Operating Expenses (OPEX) during the reporting period, while
maintaining investments to scale operations.
• In Q3 2022, net profit from continuing operations increased 18% YoY to AED 37 million.
Net profit from discontinued operations includes profits incurred in Q3 2021 from InfoFort
sale last year.
• Year to date, the Company has sustained a very healthy liquidity profile with consistent
positive free cash flow, a cash balance of AED 635 million, and a debt-to-EBITDA ratio of
0.8x, excluding IFRS 16. Aramex’s strong balance sheet will support the Company’s
growth strategy including investments in digital and technological infrastructure as well as
its active M&A pipeline.
Othman Aljeda, Chief Executive Officer 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% of the Group’s total revenue.
The Courier business remained resilient with a stable GP margin of 30%, 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.
We remain cognizant of global macro activity, and believe that our dominant position in the
GCC, a region which is enjoying economic expansion and relatively optimistic consumer
sentiment, will continue to support our resilient performance.
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.”Business Performance Highlights
Courier Business: Aramex’s Courier business includes International Express and Domestic
Express and offers delivery and last mile solutions serving the B2B and B2C customer base
including Shop & Ship, e-commerce, FMCG, SMEs and others.
Courier Business Financial Highlights
Yo Y Yo Y
In Thousands of AED Q3 2022 Q3 2021 9M 2022 9M 2021
Change Change
Courier Business Revenue 913,035 1,069,652 (15%) 2,760,290 3,172,576 (13%)
International Express
496,500 608,877 (18%) 1,641,336 1,988,957 (17%)
Revenue
Domestic Express Revenue 416,535 460,775 (10%) 1,118,954 1,183,619 (5%)
Courier Business Gross
269,773 322,138 (16%) 794,030 932,550 (15%)
Profit
Courier Business Shipment Volumes
Yo Y Yo Y
Q3 2022 Q3 2021 9M 2022 9M 2021
Change Change
International Express 5,123,776 6,300,214 (19%) 16,393,679 19,704,145 (17%)
Domestic Express 24,481,680 27,600,108 (11%) 73,591,184 78,789,432 (7%)
Total 29,605,456 33,900,322 (13%) 89,984,863 98,493,577 (9%)
• 9M 2022 Revenue for the Courier business was AED 2.8 billion, with AED 1.64 billion
reported by international express and AED 1.12 billion reported by domestic express.
• The Courier business Gross Profit margin was stable at 30% in Q3 2022. Notably, Shop &
Ship business delivered the highest Gross Profit margin since Q1 2021.
• Domestic Express reported growth in volumes from all regions except Oceania, where a
turnaround plan is being rolled out to address challenges resulting from inflation, Covid-
related workforce shortages and the increase in fuel costs.
• The cross-border International Express business was impacted by a decrease in cross-
border volumes in North Asia and GCC, as well as a softness in volumes in other markets
due to macroeconomic conditions and normalization of volumes post-Covid.
• Focus on driving revenue quality and customer diversification has helped with new
customer wins in e-commerce, retail, SMEs, and other sectors in Q3 2022. The premium
product is progressing well, with good demand intra-GCC on 10 different lanes, with plans
to expand in the coming period. In Saudi Arabia, Aramex launched a 4-hour service with a
major beauty & fashion retailer.
• To further enhance the last mile journey, Aramex significantly expanded the Pick-Up and
Drop-Off (PUDO) network and added new micro hubs in the GCC.
• The Company started receiving shipments from Italy, Netherlands, and Czech Republic as
part of our initiatives to build international lanes in partnership with DPDgroup.Logistics & Freight-Forwarding: Aramex’s Logistics & Freight-Forwarding business includes
air freight, sea freight, land freight, and warehousing and distribution solutions. It serves a B2B
customer base across multiple verticals including industrials, healthcare & pharmaceutical,
aerospace, retail & fashion, amongst others.
Logistics & Freight-Forwarding Business Financial Highlights
Yo Y Yo Y
In Thousands of AED Q3 2022 Q3 2021 9M 2022 9M 2021
Cha nge Change
Logistics & Freight-
550,004 426,445 29% 1,597,409 1,256,715 27%
Forwarding Revenue
Freight-Forwarding
439,530 318,000 38% 1,263,073 934,875 35%
Revenue
Integrated Logistics &
Supply Chain Solutions 110,475 108,445 2% 334,336 321,840 4%
Revenue
Logistics & Freight-
69,489 51,879 34% 221,059 147,611 50%
Forwarding Gross Profit
Freight-Forwarding Shipment Volumes
Yo Y Yo Y
Q3 2022 Q3 2021 9M 2022 9M 2021
Change Change
Land Freight (FTL) 7,355 6,294 (17%) 21,420 18,182 18%
Land Freight (LTL KGs) 38,523,420 39,762,129 (3%) 114,618,154 111,786,577 3%
Sea Freight (FCL TEU) 7,766 8,663 (10%) 22,741 26,969 (16%)
Sea Freight (LCL CBM) 4,759 8,441 (44%) 14,018 29,066 (52%)
Air Freight (KGs) 11,773,193 12,392,469 (5%) 40,946,033 34,882,011 17%
• The Freight-Forwarding business delivered solid growth, with revenues reaching AED 1.3
billion in 9M 2022, predominantly driven by strong demand from industrials, as well as
good contributions from other high-growth verticals such as retail, SME businesses and
pharmaceuticals across the network. The business delivered a 2-percentage point
improvement in GP margin to 14% in the first nine months of the year 2022.
• Integrated Logistics & Supply Chain Solutions delivered good growth in revenues for the
Q3 and 9M periods in 2022, attributed to strong e-commerce activity in the GCC and
partially offset by one-off provisions. The Gross Profit margin for the business was
impacted by one-offs associated with restructuring of the business which is expected to
be completed by end of this year as we remain focused on quality revenue customers
only.
• Utilization across owned and leased warehouses reached 90% in key markets and
automation rollout of facilities is on track.
- Ends –About Aramex:
Since its foundation in 1982, Aramex has grown to become a global leader in the logistics and transportation
industry, recognized for its customized and innovative services for businesses and consumers. Listed on the
Dubai Financial Market (DFM) and headquartered in the UAE, Aramex’s location bridges the path between
East and West, enabling its reach to more customers with the provision of effective logistics solutions
worldwide.
Aramex currently has business operations in 600+ cities across more than 60 countries worldwide and
employs over 16,000 professionals.
The Company has two core businesses:
1. Express: it includes International Express and Domestic Express and offers innovative delivery and
last mile solutions serving the B2B and B2C customer base including Shop & Ship, e-commerce,
FMCG, SMEs and others.
2. Logistics & Freight-Forwarding: it includes air freight, sea freight, land freight, and warehousing
and distribution solutions. It serves a B2B customer base across multiple verticals including
industrials, healthcare & pharmaceutical, aerospace, retail & fashion, amongst others.
Contributing to sustainable development is a core pillar of Aramex’s strategy. Through its Delivering Good
program, Aramex pioneers sustainable projects on the three key themes of Education and Youth
Empowerment, Entrepreneurship, and Environment. Aramex is committed to the Science Based Targets
initiative (SBTi), with a clear roadmap to achieve its Net Zero goal by 2040.
For more information, please visit us: www.aramex.com
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For more information, please contact:
Aramex
Mohammad Al Qassem Anca Cighi
Head of Corporate Communications Investor Relations Director
mohammadalah@aramex.com Investorrelations@aramex.com
Brunswick Group
Celine Aswad
Director
ARAMEX@brunswickgroup.com

Sentiment: positive