During the third quarter of 2023, Aramex maintained its performance, generating Group revenues of AED 1.35B.
This marked a modest 5% year-on-year decline, primarily due to currency fluctuations, macroeconomic challenges, and subdued global retail activity in specific markets.
The quarter demonstrated the company’s resilience, evident through a commendable 4% year-on-year increase in gross profit and a robust EBITDA of AED 134M in Q3 2023.
Operational Efficiency Boosts Aramex’s Achievements
These achievements were made possible by the company’s proactive measures to enhance operational efficiency and optimize General and Administrative expenses (GA) for the core business, excluding MyUS.
Aramex reported a net profit of AED 9.6M in Q3 2023, reflecting a significant decrease from the AED 39.6M recorded in Q3 2022, according to WAM.
A substantial portion of this decline in net income is attributed to interest expenses related to the MyUS acquisition, driven by the sharp increase in interest rates since the transaction. Therefore, when excluding the FX impact and the rise in finance loan expenses, the normalised net income for Q3 2023 was AED 30.4M, indicating a 23% year-on-year decline.
Othman Aljeda, Chief Executive Officer, Aramex, said, “In the face of an ongoing global growth slowdown, Aramex remains steadfast in its commitment to a strategic framework centered on operational efficiency, high-quality sales, and stringent cost management. Our focus on cost optimization has been pivotal in maintaining steady operating margins, even amidst the challenges posed by currency fluctuations and the interest rate environment.”
‘’As we continue to execute Q4, historically a stronger quarter marked by increased retail activity during festivals, our primary focus will be to deliver outstanding services to our customers.
We will continue enhancing trade lanes, enriching the customer experience and fortifying our operational capabilities across all business lines. Our goal is to expand our quality business lines, focusing on B2B, direct brands, SMEs, and premium offerings such as same and next-day deliveries.”
