Aramex finished the final quarter of 2023 in good fashion as the logistics operator reported more than double the net income posted in the same period in 2022, as well as a record quarter for international express volumes.
International Express saw a 31 percent increase in shipment volumes year on year between October and December, reaching 7.6 million shipments and setting a record for the highest quarterly volumes in company history. For the full year 2023, volumes were up 5 percent year on year, driven by new customers. Revenue increased to AED 656 million in Q4 2023, reflecting 8 percent YoY growth while full year growth was at 2 percent compared to 2022.
Despite the remarkable revenue growth for international express, other products saw revenue declines. Domestic Express delivered a resilient performance amidst softened retail activity worldwide with stable volumes for both the final quarter and full-year period in 2023. Revenue for the same quarter and full year were down 4 percent and 5 percent year on year at AED 362 million and AED 1.43 billion, respectively, mainly due to due to currency fluctuations.
The freight forwarding unit meanwhile saw the impact of global falling rates, as revenue fell 9 percent year on year in Q4, which mirrored the normalising trend for the full year with an 11 percent drop. Air freight volumes were up 3 percent year on year in Q4, but were down 15 percent for the full year.
Furthermore, the domestic express and logistics businesses reported marginal declines in revenue, as domestic shipment volumes remained stable. Domestic express saw revenue drop 4 percent year on year in Q4 to AED 362 million, whilst full-year revenue slid 5 percent to AED 1.43 billion. Logistics saw the same revenue contraction for both periods.
Overall, Aramex reported a marginal 1 percent YoY decline in Q4 revenue to AED 1.52 billion, despite challenging market conditions and currency fluctuations, whilst full year revenue was healthy at AED 5.69 billion, a decline of 4 percent year on year.
Despite ongoing challenges, Othman Aljeda, Aramex chief, was upbeat about the strong final quarter and full-year results, attributed to client wins, operational excellence and the company’s market strength in the GCC and wider MENAT region. The CEO said the company is closely monitoring the current shipping disruption at the Red Sea, and has deployed its trucks via Dubai and via Dammam as an alternate transport option for shipments arriving from Asia and via Port Said in Egypt for shipments arriving from Europe.
“Regionally, the GCC and MENAT continued to account for half of our total Group Revenue and Gross Profit in Q4 2023. Despite mixed economic indicators across these markets, we achieved growth in gross profit of 6% in the GCC and 32% in MENAT. Our global operations are expanding, and we see opportunities across our key international markets,” noted Aljeda
Aramex said it will continue to diversify across verticals and markets for international express, while also expanding its premium product and dangerous goods offering.
