Dubai: The Dubai logistics company Aramex recorded flat revenues of Dh4.39 billion for the first nine months of 2022, against Dh4.45 billion a year ago, with its freight forwarding operations delivering significant growth. Net profit slipped 3 per cent to Dh128.91 million from Dh132.42 million.
On its legacy courier business, Aramex said the gross profit margin remains stable, helped by introduction of more premium offerings and same-day deliveries. “The strength and resilience of the GCC economies contributed to the stability of our top-line year-to date in 2022,” said Othman Aljeda, CEO.
“Our revenue mix is now more diversified both in terms of contributions from the different business segments and from a more diverse customer base. Our diversified customer base has further reduced concentration risk, with our top customer currently contributing 7 per cent of the group’s total revenue.”
Aramex, which is DFM listed and allows foreign investors to take 100 per cent, is looking to make more top-line gains from recent deals. The current quarter is when it will consolidate the recent buy into MyUS, the cross-border ecommerce platform.
“We look forward to unlocking further value over the long term through revenue and cost synergies,” the CEO added. “We remain cognizant of global macro activity, and believe that our dominant position in the GCC, a region which is enjoying economic expansion and relatively optimistic consumer sentiment, will continue to support our resilient performance.”
The company has started receiving shipments from Italy, Netherlands, and Czech Republic, part of initiatives to 'build international lanes in partnership with DPDgroup'.
The courier business remained resilient with a stable GP margin of 30%, supported by initiatives to improve operational efficiencies and the successful rollout of same-day deliveries and other premium services in the GCC.
Making gains on freight
The freight forwarding side of the business came up with Dh1.3 billion in these nine months, helped on by ‘strong demand from industrials’. There were also handy contributions from retail, SMEs and pharmaceuticals. "The freight forwarding business continues to be our strong performer, registering double-digit growth in both the three-month and nine-month periods," said Aljeda.
With logistics and supply chain, the gross profit margin was ‘impacted by one-offs associated with restructuring of the business’. Aramex expects to complete the process by year-end ‘as we remain focused on quality revenue customers only’.