Aramex reports AED 2.97 billion in H1 2022 revenue
• Increased activity in Industrials, Retail, Pharmaceuticals, and SMEs are contributing
positively to the Freight-Forwarding and Logistics business
• Normalization in e-Commerce activity combined with the current macroeconomic
pressures are leading to volume declines in the Courier business in line with the industry
• Sustained gross profit margins at a Group level driven by strong growth in Freight-
Forwarding and Logistics business and operational efficiencies in Courier business
• Robust balance sheet, conservative leverage, and strong cash position underpin expansion
and upcoming M&A activity, including the recently announced MyUS acquisition
• Continuous investment in digital and tech infrastructure to unlock operational efficiencies
Dubai, UAE – Thursday, 11th August 2022: Aramex (DFM: ARMX) a leading global provider
of comprehensive logistics and transportation solutions, today announced its financial results
for the second quarter (“Q2”) and first half (“H1”) ending 30 June 2022.
Yo Y Yo Y
In Thousands of AED Q2 2022 Q2 2021 H1 2022 H1 2021
Cha nge Change
Revenue 1,516,589 1,570,923 (3%) 2,965,521 2,995,856 (1%)
Gross Profit 378,623 388,665 (3%) 722,723 747,310 (3%)
Gross Profit Margin 25.0% 24.7% - 24.4% 24.9% -
Operating Profit 63,569 99,552 (36%) 138,575 179,005 (23%)
Normalized Operating Profit - - - 143,577 179,005 (20%)
Operating Profit Margin 4.2% 6.3% - 4.7% 6.0% -
Normalized Operating Profit
- - - 4.8% 6.0% -
Margin
EBITDA 155,534 192,711 (19%) 324,202 362,556 (11%)
Normalized EBITDA - - - 329,204 362,556 (9%)
EBITDA Margin 10.3% 12.3% - 10.9% 12.1% -
Normalized EBITDA Margin - - - 11.1% 12.1% -
Net Profit 44,568 65,466 (32%) 91,871 111,479 (18%)
Normalized Net Profit - - - 96,873 111,479 (13%)
Net Profit Margin 2.9% 4.2% - 3.1% 3.7% -
Normalized Net Profit Margin - - - 3.3% 3.7% -
Group Financial Performance Highlights
• H1 2022 Revenue was AED 2.97 billion, a 1% decline from the same period a year ago. The
lower performance of the Courier business was offset by solid progress in Logistics and
Freight Forwarding business. Q2 2022 Revenue declined 3% YoY to AED 1.52 billion due to
lower Courier volumes.
• On a group level, GP margins remained stable over both the Q2 and six-month periods,
driven by accelerated growth in the Logistics and Freight-Forwarding business and
efficiencies in the Courier business.• In H1 2022 Net Profit declined by 18% YoY to AED 91.9 million mainly attributed to softer
revenues, and also partially impacted by the exchange rate impact, namely the Lebanese
Pound and Egyptian Pound. Net Profit in Q2 declined 32% to AED 44.6 million. Excluding
the impact of write-offs from discontinued technologies and other one offs, Normalized
Net Profit for H1 2022 decreased 13% YoY to AED 96.9 million.
• Year to date, the Company has sustained a very healthy liquidity profile with positive free
cash flows, a cash balance of AED 592 million and a debt to EBITDA ratio of 0.5x 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.
• During the reporting period, in May 2022, the Company distributed FY 2021 dividends of
AED 0.13 per share, or AED 190.3 million, to its shareholders.
Othman Aljeda, Chief Executive Officer of Aramex, said: “One of the greatest
changes we have seen in our business in the first half of 2022 is the change in our revenue
mix. Our Freight-Forwarding and Logistics business was the star performer, helping offset
the softness we have seen in the Courier business.
The double-digit top-line growth of Freight-Forwarding, and the growth in Logistics is
owed to our strategic investment in expanding our operations and market share, and
boosting our capabilities in that business. The organic growth year to date is
predominately driven by high growth sectors such as industrials, SMEs, Retail and
Pharmaceuticals.
Our courier business is facing industry headwinds. Despite this, we have been able to
protect and maintain our gross profit margin.
The softness in e-commerce activity is a global, industry-wide trend as consumers
returned to brick-and-mortar shopping as COVID restrictions eased. We are also seeing
rising inflation rates globally, which puts downward pressure on discretionary spending.
Going forward, our focus is on quality earnings and better efficiencies, by optimizing
resources, and strengthening our end-to-end product and service offering across
Courier, Freight, Logistics, Warehousing, and Supply Chain.
During the period, we announced the acquisition of MyUS, a global cross-border e-
commerce enabler, which is set to bolster Aramex’s cross-border business and expand our
geographic reach and footprint in the US, a key growth market. The transaction is expected
to be fully completed during the third quarter of this year.”Notable Developments
• DPDgroup, Aramex’s largest single shareholder, increased its equity stake in the
Company to 28% during the reporting period, demonstrating its confidence in Aramex’s
ability to create value over the long term. The strategic collaboration continues to
progress nicely with new trade lanes opened in the first half of the year to increase
connectivity between GCC and Europe.
• Operational efficiency continues through the automatization of warehouses and roll out
of AI solutions across the entire logistics life cycle. The Company also scaled its presence
for a more efficient last mile operation by expanding its pick up drop off locations and
FLEET, Aramex’s crowd-based delivery platform.
• Aramex’s investments in new technologies are progressing well including the optimization
of internal systems and enhancements in operational infrastructure, particularly in high-
volume markets such as Egypt and Qatar.
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
%Y oY %Y oY
In Thousands of AED Q2 2022 Q2 2021 H1 2022 H1 2021
Change Change
Courier Business Revenue 936,163 1,100,781 (15%) 1,847,255 2,102,924 (12%)
International Express Revenue 587,091 733,556 (20%) 1,144,836 1,380,080 (17%)
Domestic Express Revenue 349,072 367,226 (5%) 702,419 722,844 (3%)
Courier Business Operating
40,109 104,627 (62%) 92,555 172,420 (46%)
Profit
Courier Business Shipment Volumes
%Y oY %Y oY
Q2 2022 Q2 2021 H1 2022 H1 2021
Change Change
International Express 5,930,134 7,200,104 (18%) 11,269,903 13,403,931 (16%)
Domestic Express 24,101,160 25,800,486 (7%) 49,109,504 51,189,324 (4%)
Total 30,031,294 33,000,590 (9%) 60,379,407 64,593,255 (7%)
• In H1 2022 Revenue for the Courier Business decreased by 12% YoY to AED 1.85 billion,
and in Q2 Revenue declined 15% to AED 936 million. The lower revenue in both periods is
owed predominately to lower volumes from the cross-border International Express
business, which saw a 16% YoY and 18% YoY decline in volumes in the H1 and Q2 periods,
respectively.
• Domestic Express business remained relatively resilient, with H1 2022 Revenue dipping 3%
YoY to AED 702 million, reflecting the 4% YoY decline in volumes for that period.
• Despite softening volumes, Courier business gross profit margin held firm at 28% in H1
2022 and 29% in Q2 2022.Alaa Saoudi, Chief Operating Officer – Express, said: “The COVID years of 2020 and
2021 drove hyper-activity in the express and last mile sector, however this phenomenon is
starting to fade. This year, we started to see a normalization in e-Commerce activities as
well as macroeconomic headwinds. This has undoubtedly impacted our performance
during this period on a top line level, however, we remain focused on driving greater
efficiencies to maintain stable gross profit margins.
In this context, we concentrate efforts on driving quality earnings and lowering our cost to
serve. We are progressing with the launch of our premium product, and are introducing
innovative solutions including paperless returns and e-commerce fulfilment solutions. We
continue to take a prudent approach to cost management.
Furthermore, we worked on enhancing the last mile journey by expanding our fleet of pick-
up and drop-off locations (PUDO) in the GCC by 22% compared to Q1 2022, as well as
adopting a fleet management platform to help optimize our fleet performance.
Meanwhile, our strategic alliance with DPDgroup enabled us to execute on our
commitment to facilitating global trade as we opened three new trade lanes in Italy,
Germany, France and Netherlands.”
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
%YoY %YoY
In Thousands of AED Q2 2022 Q2 2021 H1 2022 H1 2021
Change Change
Logistics & Freight
544,166 437,404 24% 1,047,404 830,270 26%
Forwarding Revenue
Freight Forwarding
432,410 328,595 32% 823,542 616,875 34%
Revenue
Integrated Logistics &
Supply Chain Solutions 111,756 108,809 3% 223,862 213,395 5%
Revenue
Logistics & Freight-
Forwarding Operating 22,371 (4,917) 555% 42,942 4,610 832%
ProfitFreight-Forwarding Shipment Volumes
%Y oY %Y oY
Q2 2022 Q2 2021 H1 2022 H1 2021
Change Change
Land Freight (FTL) 6,768 5,981 13% 14,038 11,932 18%
Land Freight (LTL KGs) 7,755,561 7,394,215 5% 15,773,676 13,791,148 14%
Sea Freight (FCL TEU) 7,179 9,183 (22%) 15,398 17,849 (14%)
Sea Freight (LCL CBM) 4,066 28,129 (86%) 9,396 41,281 (77%)
Air Freight (KGs) 16,897,577 11,538,110 46% 30,310,592 23,066,952 31%
• In H1 2022, Revenue for the Logistics & Freight-Forwarding business increased 26% YoY
to AED 1.05 billion and Q2 2022 registered a 24% YoY increase to AED 544 million on the
back of strong performance of the Freight-Forwarding business, as well as the steady
pace of growth of the Logistics business.
• Freight-Forwarding Revenue surged 34% YoY in H1 2022 to AED 824 million and by 32%
YoY in Q2 2022 to AED 432 million. The remarkable growth is predominantly driven by
solid demand from the industrial and SME sectors, as well as higher contributions from
high-growth sectors including retail and pharmaceuticals. In Q2 2022, Gross profit and
EBIT are growing at a much faster rate than revenue, indicating the success of the
initiatives to improve capabilities and operational efficiencies.
• Integrated Logistics & Supply Chain Solutions revenues rose 5% YoY in H1 2022 to AED
224 million and 3% YoY in Q2 2022 to AED 112 million attributed to strong retail activity,
increased volumes from industrial clients, and new business wins in GCC, Egypt and
Ireland. The segment also witnessed significant growth in margins driven by robust client
management and strong operational and cost efficiencies. The gross profit margin in Q2
2022 was 25% up from the 6% in the same period last year. Meanwhile, the gross profit
margin in H1 2022 was 19%, up from 12% in the previous year.
Mohammad Alkhas, Chief Operating Officer – Logistics & Freight-Forwarding, said:
“The Logistics & Freight-Forwarding business sustained a remarkable growth momentum
as we focused on capitalizing on verticals where Aramex has a dominant position while
adopting a solutions-oriented customer approach to attract new customers.
During the period, we continued our efforts to enable global trade and enhance
connectivity, as well as consolidated trade lanes between Europe and the Middle East. We
also progressed our digital strategy to drive efficiencies across the business including
automation, optimization of storage methods, and wider improvements in our IT and data
systems.”
- 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. Aramex
offers innovative services and solutions, including international and domestic express delivery, freight-forwarding,
integrated logistics and supply chain management and e-Commerce solutions. Aramex is strategically leveraging
technology for better and more efficient last-mile delivery solutions. This approach has significant benefits, and that’s
why Aramex considers itself to be a technology-driven enterprise, selling transportation and logistics solutions without
owning heavy assets.
For more information, please visit us: www.aramex.com
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For more information, please contact:
Aramex
Mohammad Al Qassem Anca Cighi
Senior Manager – Corporate Communications Investor Relations Director
mohammadalah@aramex.com Investorrelations@aramex.com
Brunswick Group
Celine Aswad
Director
ARAMEX@brunswickgroup.com

Sentiment: positive