Media ININ Economy We Trust
Dubai, February 9 / Aramex, listed on the Dubai Financial Market, announced its preliminary financial results, as it achieved net profits from normal operations of about 173 million dirhams during the year 2022, a growth of 9% compared to about 158.27 million dirhams during the year 2021.
In a statement today, the company attributed the growth in net profits from normal operations largely to the company’s efforts to enhance operational efficiency, which benefited from the expansion of the economies of the Gulf Cooperation Council countries, the increase in industrial activities in the region, and the flexibility of consumer spending.
And “Aramex” achieved net profits of about 165.379 million dirhams during 2022, while it achieved about 33.86 million dirhams during the fourth quarter of last year. Aramex’s revenues for the fiscal year 2022 did not change significantly compared to 2021, while revenues for the fourth quarter of 2022 amounted to 1.53 billion dirhams.
The financial results from normal operations have been calculated to enable comparison with 2021 results, and therefore, they exclude the performance of the MyUS platform, acquisition-related costs and other exceptional items generally associated with the logistics sector.
Aramex concluded the fiscal year with a strong cash balance of AED 768 million, maintaining its stability compared to last year. The company maintained a strong balance sheet with a net debt ratio of 2.2 times EBITDA, with the exception of IFRS 16, which gives the company a promising opportunity to achieve its growth plans.
Othman Al-Jeddah, CEO of Aramex, said: “We closed the year with a stronger and more resilient company after our four business sectors recorded outstanding performance, in addition to our clear and specific growth strategy for the next five years. During 2022, we maintained a stable gross profit margin for the group, as well as in the sector Domestic and international express services In addition, we expanded the business of the freight services segment by 27% while at the same time increasing its gross profit by 51% For the logistics services segment, we focused on achieving high quality revenues and recorded an occupancy rate of 85% for our warehouses as well as Increase gross profit by 58%.
Al-Jedda continued: “This performance was driven by strong growth in our main markets in the GCC, MENA countries and Turkey, which contributed to the good performance we achieved in our main foreign markets, including the United States and the United Kingdom. It should be noted that we succeeded in Maintaining the stability of general and administrative expenses and selling expenses in our group, which reflects the flexibility of our group, which has become more efficient in terms of costs and more robust and ready to maintain future growth under a similar and stable framework for general and administrative expenses and selling expenses.”
He added: “The freight services sector, thanks to its strong performance, made a significant contribution to the group’s revenues and net income during the year 2022. This performance is due to the implementation of the corporate-oriented business growth strategy and the investment in talents and competencies to be able to achieve that strategy while seizing promising opportunities in the markets.” Today, the domestic and international express services sectors have become more efficient and dependent on digital technologies, especially after we modernized our core systems and infrastructure, launched a secure cloud-based integration platform, and adopted new chatbots to enhance the customer experience. reported an improvement of 10% in the productivity of delivery personnel, specifically the average daily pick-up and delivery of customer shipments and parcels throughout the year, while 96% of customer service requests were fulfilled during the last quarter of 2022 based on new chatbots. transport cost per kilogram in improving the margins of the express services sector.”
Regarding Aramex’s expectations for the coming period, Othman Al-Jeddah said: “We are still looking forward with great confidence and optimism to the economic prospects in our local markets across the GCC, Middle East, North Africa and Turkey regions, based on the good expectations of the GDP growth of those countries, the young population groups, In addition to promising growth opportunities, we also look forward to contributing to this growth by supporting trade exchange through the main routes, and always providing the best and most suitable for our customers, knowing that these two regions contribute 53% of our global revenues. Therefore, we are working to strengthen the sales teams by hiring employees Renewed during the year 2023.
He added: “In the next phase, the company’s strategy for the next five years will form a clear and specific roadmap for developing our business and adding long-term value to all stakeholders. We have allocated a total amount of 2.4 billion dirhams as capital expenditures for the next five years in order to support direct growth plans within the company. We also have Many upcoming opportunities to conclude merger and acquisition agreements, given our conviction of the importance of these agreements as a major contributor to advancing and accelerating the company’s growth strategy. Depending on our strong cash position, we will also be able to finance some of these acquisitions.”
Al-Jeddah concluded, “With regard to the freight services sector, we will continue our efforts to build and develop expertise and move forward in enhancing competencies. As for the logistics services sector, we intend to expand the company’s storage spaces by almost double by 2027 to keep pace with the steady growth of our business. In the field of express transportation services Domestic and international, we will continue to focus on protecting our margins and improving operational efficiencies, while continuing to grow our core businesses in the SME sector, e-commerce, retail, and more.”
