Aramex, the largest courier company in the Middle East, has reported a more than doubled fourth-quarter profit, attributed to record volumes in its international express unit and strong growth in the GCC, Middle East, North Africa, and Turkey markets.
The net profit for the quarter ending in December increased by 127%, reaching AED 76.7M ($20.9M). Earnings before interest, taxes, depreciation, and amortisation rose by 33% to AED 197.4M due to efficient cost management. Despite revenue declining by 1% to AED 1.52B during the period, the GCC and Menat region contributed half of Aramex’s group revenue.
CEO Othman Aljeda credited the exceptional performance to record international express volumes, operational excellence, and the strength of home markets, despite persistent global operating challenges.
Aramex is closely monitoring disruptions in the Red Sea caused by Houthi rebels’ attacks, utilising its trucking fleet for alternative solutions. While international express volumes reached record highs, Aramex’s other units experienced softer revenue growth.
The freight-forwarding unit reported a 9% annual drop in revenue to AED 383.9M, mainly due to declining global freight rates. Aramex’s domestic express unit posted a 4% decline in revenue to AED 361.7M, attributed to flattened shipment volumes amid softened retail activity worldwide.
For the full year, Aramex’s net profit declined to AED 129.2M, with revenue dropping 4% to AED 5.69B, affected by increased finance costs and currency fluctuations, according to The National News.