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Aramex, a leading global provider of comprehensive logistics and transportation solutions, today reported revenues of AED2.97 billion ($808.6 million) for the first half of this year, a 1% decline from the same period a year ago.
The net profit declined by 18% YoY to AED91.9 million ($25.02 million) mainly attributed to softer revenues, and also partially impacted by the exchange rate, namely the Lebanese Pound and Egyptian Pound.
Q2 2022 revenue declined 3% YoY to AED1.52 billion due to lower Courier volumes, it said.
Net Profit in Q2 declined 32% to AED44.6 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.
On a group level, gross profit 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.
The lower performance of the Courier business was offset by solid progress in Logistics and Freight Forwarding business, the company said.
Year to date, the company has sustained a very healthy liquidity profile with positive free cash flows, a cash balance of AED592 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, it said.
During the reporting period, in May 2022, the company distributed FY 2021 dividends of AED0.13 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," he said.
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, he said.
"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," he said. -TradeArabia News Service