UAE Business: Aramex Q1 net profit rises 3% YoY to $13 million – Gulf Digital News

UAE Business: Aramex Q1 net profit rises 3% YoY to $13 million – Gulf Digital News

Aramex, a leading global provider of logistics and transportation solutions, saw its Q1 net profit rise 3% YoY to AED47 million ($13 million), while a robust balance sheet, low leverage and healthy cash position backs its M&A plans.

Excluding the impact of write-offs from discontinued technologies, normalised net profit for the period increased 14% YoY to AED52 million. The company maintained a strong balance sheet position with debt-to-equity ratio of 46.8%, and a solid cash balance of AED762 million as at March 31, 2022, supporting its active M&A pipeline.

Aramex Q1 2022 revenues rose 2% YoY to AED1.45 billion driven by strong performance in Logistics & Freight-Forwarding Business. Its redesigned operating model focuses on improving operational efficiencies and cost optimisation, this has led to a 13% YoY decline in Selling expenses while General and Administrative Expenses (SG&A) costs declined by 1%.

Ambitious growth strategy

Othman Aljeda, Chief Executive Officer of Aramex, said: “Aramex is off to a strong start in 2022. We produced a solid financial and business performance as we continue to execute on our ambitious growth strategy delivered through our recently redesigned and more focused operating model.”

Notably, Aramex is starting to see a stabilisation in its profitability margins. This is predominantly attributed