Aramex PJSC: Navigating Shifts in Logistics with Strategic Acquisitions and Regional Growth
Aramex PJSC, a leading global logistics provider, has released its latest financial results for the first half of 2025. This article delves into the company's performance, comparing it with previous periods, and examines the strategic moves that have shaped its current financial standing.
Summary
Aramex PJSC reports stable revenues for H1 2025, driven by regional logistics growth and strategic acquisitions, despite challenges in international express services. The company's focus on nearshoring and strategic partnerships positions it for future growth.
Aramex PJSC: Navigating Shifts in Logistics with Strategic Acquisitions and Regional Growth
Aramex PJSC, a prominent global logistics and transportation solutions provider, has released its unaudited interim condensed consolidated financial statements for the first half of 2025. The company's performance reflects a strategic pivot towards regional logistics and domestic express services, amidst a challenging global logistics environment.
Key Performance Indicators
| KPI | H1 2025 | H1 2024 | % Change (YoY) |
|---|---|---|---|
| Revenues | AED 3.06 billion | AED 3.04 billion | 1% |
| Gross Profit | AED 694 million | AED 740 million | -6% |
| EBIT | AED 77 million | AED 139 million | -45% |
| Net Profit | AED 8 million | AED 49 million | -84% |
| EBITDA | AED 252 million | AED 316 million | -20% |
Analysis of KPIs
Aramex's revenue for the first half of 2025 remained stable at AED 3.06 billion, a modest 1% increase from the previous year. This stability is attributed to significant growth in domestic express and logistics services, which saw increases of 13% and 22% respectively. However, the international express segment faced a 15% decline, impacting the overall profitability.
Gross profit declined by 6% year-over-year, reflecting a recalibration of the company's product mix, emphasizing regional and domestic solutions over international express services. This shift is in line with global trends towards nearshoring, where businesses position inventory closer to key markets to streamline supply chains.
Strategic Developments
Aramex's strategic focus on regional logistics is further bolstered by the successful acquisition of Q Logistics and the partnership with ADQ, which now holds a 63% share in the company. These moves are expected to drive innovation, scale, and growth in the company's operations.
The company's Accelerate28 transformation program, launched in early 2025, aims to enhance operational efficiency and profitability through a new regional structure and value capture initiatives.
Conclusion
Despite challenges in the international express segment, Aramex's strategic focus on regional logistics and domestic express services positions it well for future growth. The company's recent acquisitions and partnerships are expected to enhance its competitive edge and drive long-term profitability.
Source
Summary
Aramex PJSC and its subsidiaries have released their unaudited interim condensed consolidated financial statements for the period ending on June 30, 2025.
