Aramex PJSC, a leading global provider of logistics and transportation solutions, has delivered an impressive financial performance for the third quarter (Q3) of 2024. The company reported an 18% year-on-year increase in revenue, reaching AED 1.59 billion. This robust growth was fueled by strong performances across all its product lines: International Express, Domestic Express, Freight Forwarding, and Logistics & Supply Chain Solutions.

The International Express segment saw a 10% year-on-year increase in revenue, supported by a 34% surge in volumes. This growth was largely driven by the rising demand for premium services and cross-border e-commerce. Meanwhile, Domestic Express achieved a remarkable 27% revenue growth, with volumes increasing by 18%, highlighting strong consumer activity in home markets.

Freight Forwarding also experienced significant gains, with a 22% rise in revenue, particularly in air and land freight. This was attributed to businesses leveraging Aramex's reliable network for seamless trade. The Logistics & Supply Chain Solutions segment grew by 13%, operating close to full capacity due to new customer acquisitions.

Despite challenges in the operating environment, Aramex's gross profit increased by 11% year-on-year to AED 373 million, though the gross profit margin softened to 23%. The company remains on track to deliver a strong performance for the full year 2024, with projected revenue growth of approximately 9%.

Aramex's balance sheet remains strong with a cash position of AED 447 million and a Net Debt-to-EBITDA ratio of 2.1x as of September 30, 2024. The company's focus on value creation has resulted in a 20 basis points improvement in ROIC, currently standing at 5%.

Given the company's solid financial performance and strategic positioning in the logistics and transportation sector, the future outlook for Aramex appears optimistic. Investors may consider holding their positions as the company continues to demonstrate growth and resilience in a competitive market.