UAE logistics firm Aramex hits 95% gain in Q1-2024 net profit as turnaround plan delivers

UAE logistics firm Aramex hits 95% gain in Q1-2024 net profit as turnaround plan delivers

Aramex's international express services helped out with the strong increases in Q1-2024. Image Credit: Supplied

Dubai: The DFM-listed logistics company Aramex delivered a near 100 per cent increase in net profit for the first quarter 2024, marking a strong return to growth ways. Net profit totalled Dh46.5 million, up from Dh23.9 million, which is a gain of 95 per cent year-on-year.

This was brought on by revenues of Dh1.5 billion, a gain of 8 per cent, and ‘with strong contributions from all product lines’. Its international express set up a sizeable part of the volumes handled, growing at 44 per cent. The domestic express and freight forwarding lines turned in a ‘resilient’ performance. “Logistics and supply chain solutions maintained a stable performance in Q1-2024, despite the challenges associated with currency devaluations in Egypt which negatively,” said a statement.

In the recent past, the Dubai headquartered Aramex had been working on expanding its higher margin services, analysts say, as the wider logistics industry saw some significant changes in a post-Covid environment. Ecommerce generated deliveries continue to help the logistics operator, while the business environment across GCC economies remains on an upswing, which too would help, analysts say.

Bring down debt

This year,