ARAMEX PJSC

Aramex, a global provider of logistics and transportation solutions, has signed a joint venture agreement with AD Ports Group, a facilitator of global trade and logistics. The partnership aims to develop and operate a new Non-Vessel Operating Common Carrier (NVOCC) enterprise. Aramex will hold a 49% stake in the new venture, which plans to service the freight-forwarding industry with tailored solutions for ocean-bound container cargo. The focus will be on enhancing shipping connectivity across the GCC, Indian, and East and West African markets. The initial target is to handle 10,000 containers, with plans to increase this number in the medium to long term. This agreement is part of both parties' efforts to further develop the global freight industry and enhance supply chain connectivity along key international trade lanes.

Aramex reported stable revenues in Q1 2023, with revenues totaling AED 1.43 billion, a slight decrease of 1% YoY. Despite global headwinds and a softening of global shipment volumes, the company managed to outperform its global peers. The gross profit increased by 4% YoY to AED 358 million, driven by growth in the International Express business and the acquisition of MyUS. However, EBITDA decreased by 9% to AED 153 million, and net profit was AED 24 million, compared to AED 47 million in Q1 2022 due to several factors including currency devaluation and interest expenses associated with the MyUS acquisition. The Freight-Forwarding and Logistics and Supply Chain Solutions Businesses saw increases in gross profit, while Domestic Express declined due to FX impact. Despite inflationary pressures, the company managed to keep SG&A expenses stable. Aramex also reported a healthy cash balance and low leverage, with a net debt-to-EBITDA ratio of 2.3x.