Aramex has announced its 2021 financial results, showing strong growth and continuing its strong 2021.
Gross revenue has increased from AED5.51bn in 2020 to AED6.01bn in 2021, with an operating profit margin of 5.1%. EBITDA has changed from a 2020 figure of AED741m to AED676m in 2021, the margin changing from 13.5% Year-on-Year (YoY) to 11.1%. The main driver of growth in revenue has been a return of economic activity in the global economy.
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.
Courier Business has seen strong growth for Aramex, growing 5% YoY, driven by an acceleration in the global e-commerce market. International Revenue from the Courier Business reached AED2.66bn for 2021, a YoY increase of 16%. a driver of this was a 3% YoY growth in cross-border business, with shipment volumes also increasing by 4%. Domestic Express was also up, rising from AED1.36bn to AED1.49bn, cited by growth in UAE, Egypt and Australia, meaning volues rose by 12%.
Freight Forwarding and Integrated Logtistics departments also sustained growth. Freight Forwarding surged 22% in YoY growth, driven by recovery in oil, gas and retail. An increase from AED1.09bn to AED 1.33bn reflects the recovery in these industries. Integrated Logistics and Supply Chain Solutions rose 16% YoY to AED435m due to the rise in e-commerce leading to more consumer businesses expanding their business through the relevant e-commerce platforms. Cargo by means of FTLs (road), TEUs (ocean) and Kgs (air) rose by 121%, 29% and 25% respectively, highlighting the increase in operational volumes for Aramex and providing good details of how it has performed.
2022 will see Aramex focusing on scaling its business through optimising operating costs and investing in technology.
Source: Aramex
*AED=€0.24/$0.27
