Aramex Full Year Revenues Grow 10% to a Record $1.65 Billion in 2021
Aramex a leading global provider of comprehensive logistics and transportation solutions, has announced its preliminary financial results for the fourth quarter (Q4) and full year ending 31 December 2021.
The preliminary financial results and other information disclosed in this press release related to the Company’s Q4 2021 and FY 2021 performance are unaudited preliminary numbers and therefore, are subject to change.
As a result, the Company’s audited financial accounts for Q4 2021 and FY 2021 may vary from the preliminary information contained in this press release.
In Q4 2021, Revenues rose 1% YoY to 288 million driven by strong performance in Logistics & Freight-Forwarding Business. FY 2021 Revenues jumped 10% YoY to a record $1.65 billion.
Q4 2021 Operating Profit decreased 33% YoY to 16.3 million. The drop in operating profit is attributed to (1) Linehaul cost due to the continued pricing pressure (2) higher operating costs as the Company continued to scale operations to cater to higher demand and (3) Covid-19 induced costs and capacity constraints. FY 2021 operating profit declined 23% YoY to AED 307 million.
Q4 2021 Net Profit fell 21% to AED 46 million compared to AED 59 million in Q4 2020. FY 2021 Net Profit decreased by 15% to AED 225 million, compared to AED 267 million in FY 2020.
Focusing on working capital, Aramex maintained a strong balance sheet with a negative net debt position of AED 452 million, supported by a solid cash balance as at 31 December 2021.
Captain Mohamed Juma Alshamsi, Chairman of the Board of Directors of Aramex, said: “In 2021, we witnessed a significant progress in the pace of recovery of the global economy, while businesses reconfigured operating and business models to adapt to the repercussions of the pandemic.
"The gradual reopening of the global economy in the second half of the year underpinned by the strong progress made by countries in implementing national vaccination campaigns and other related measures, spurred economic growth and improved business performance and customers confidence levels.
"Our market leading position and strong reputation has attracted an international peer, GeoPost, to become a strategic investor in Aramex.”
Othman Aljeda, Chief Executive Officer, Aramex, said: “2021 demonstrated our ability to capture growth opportunities spurred by a buoyant e-commerce market and good recovery in certain industries, while simultaneously implementing a fully redesigned operating model.
"The Logistics and Freight-Forwarding business produced outstanding results in a short period of time, and we continued to capture greater market share in the Domestic Express business despite an increasingly crowded last mile delivery sector in our core markets.
"Our customer-first approach means we are absorbing a higher cost of doing business to ensure we continue to respond to customer needs, defend and grow our market share, despite the ongoing supply chain disruptions caused by the pandemic.
"As a result, our margins remain under pressure. While the pressures will likely continue in 2022, we have a defined strategy to grow the business and improve the profit margins.
"This includes investment in technology and operational optimization initiatives to strengthen and grow our business across all markets.”