Aramex Pjsc · DFM:ARMX
Aramex Pjsc — Aramex — Q2 2024 Earnings Presentation
28 slides from Aramex Pjsc's earnings presentation, Aug 9, 2024
Slide 1: Investor Presentation Q2 & H1 2024 Financial Results
INVESTOR PRESENTATION Q2 & H1 2024 Financial Results INVESTOR PRESENTATION Q1 2024 Financial Results
Slide 2: Disclaimer | Cautionary Note Regarding Forward Looking Statements
Disclaimer | Cautionary Note Regarding Forward Looking Statements This presentation has been prepared solely for informational purposes. The presentation may contain forward looking statements, which reflect our beliefs or current expectations and assumptions regarding the future of the business, fut
Slide 3: Table of contents
Disclaimer | Table of contents 1. Aramex at a Glance 2. Key Highlights of Q2 2024 3. Q2 2024 Product Breakdown 4. Q2 2024 Group Financial Results Page 3
Slide 4: Aramex Overview | Global Provider of Logistics and Transportation Solutions
Aramex Overview | Aramex is a Global Provider of comprehensive Logistics and Transportation Solutions 16,000+ 70 600+ USD 827M USD 989M Employees Countries Offices Revenues H1 2024 Market Cap on 30 June 2024 International Express Freight Forwarding With Aramex International Express, sending time-sen
Slide 5: Regions | Aramex Global Footprint
Regions | Aramex Global Footprint Eu Czech Republic Ireland Netherlands United Kingdom NORTH America MENAT United States of America Canada North Asia China Algeria Libya Hong Kong Egypt Morocco Georgia Iraq Palestine Sudan GCC Bahrain Jordan Tunisia Kuwait Lebanon Turkey Oman Qatar Saudi Arabia Unit
Slide 6: Business Highlights | Product Dynamics Summary
Business Highlights| Product Dynamics Summary International express Domestic express • Macroeconomics and geopolitics impact consumer spending • Focus on gaining market share while leveraging existing infrastructure. Continue • Focus on key international trade lanes (US and Europe) into our home mar
Slide 7: Aramex Overview | Key investment highlights
Aramex Overview | Key investment highlights Product Competitive Growth diversification advantage prospects A leading transportation player, with Our end-to-end service offering - Well -positioned to capture domestic and cross border expertise, as across courier express, freight, growth at a higher r
Slide 8: In the Middle East of It All
IN THE MIDDLE EAST OF IT ALL AN ARAMEX DOCUMENTARY | 40 YEARS OF OPERATIONS Click here to watch the video.
Slide 9: Q2 & H1 2024 Key Highlights
aramex | Q2 & H1 2024 Key Highlights
Slide 10: Aramex H1-2024 Financial Results
Aramex H1-2024 Financial Results Aramex Delivers Double-Digit Net Profit Growth in H1 2024 Despite Seasonal Challenges USD 827 mn USD 202 mn | 24% USD 38 mn | 5% USD 13 mn | 2% Revenue Gross Profit and Margin EBIT and Margin Net Profit and Margin ( 8% YoY) ( 5% YoY | 0.6 pps YoY ) ( 20% YoY |
Slide 11: Q2 2024 Impact of loss of working days
Ramadan • This year, the Ramadan season was observed entirely in Q1, resulting in Q2 not benefiting from the peak festive demand and increased consumer spending seen in Q2 2023 in several markets. Q2 2024 Impact of loss Public Holidays • Additionally, the two public holidays (Eid al- of working Fitr
Slide 12: Q2 2024 Key Highlights
Q2 2024| Key Highlights $407mn 23% $83mn $.8mn +8% -181bps +4% -85% YoY YoY YoY YoY Revenue Gross Profit % SG&A Net Profit* The company’s net profit in Q2 2024 was impacted by 1) USD 2.4 million from seasonality and adverse weather effects and 2) FX impact of USD 1.4 million.
Slide 13: Product Breakdown
Product Breakdown
Slide 14: International Express Volumes
Financial & Performance Highlights | International Express Volumes International Express Volumes (in million of shipments) Geographic contributions to int’l express volumes in Q2 2024 21% +21% +32% 0.0 -0.7 6.7 1.5 0.1 0.0 0.0 0.0 7.8 14.4 5.5 0.3 7.6 6.7 5.5 10.9 4.9 Q2 2023 Q3 2023 Q4 2023 Q1 2024
Slide 15: International Express Financials
Financial & Performance Highlights | International Express Financials Quarter Financials (in USD thousands) Revenue and GP Margin Evolution Q2 2023 Q2 2024 Change Revenue 200,000 Revenue 152,764 160,458 5% Total Direct Cost 100,000 101,486 109,240 8% 0 Gross Profit 51,278 51,218 (0%) Q4 Q1 Q2 Q3 Q4
Slide 16: Domestic Express Volumes
Financial & Performance Highlights | Domestic Express Volumes Quarterly Domestic Volumes (in million of shipments) Geographic contributions to domestic volumes in Q2 2024 Group Domestic volumes 4% 24.2 25.1 +4% +5% -0.6 -0.1 -0.2 0.0 0.0 0.0 0.0 1.8 24.2 24.5 26.6 26.2 25.1 48.9 51.3 Q2 Q3 Q4 Q1 Q2
Slide 17: Domestic Express Financials
Financial & Performance Highlights | Domestic Express Financials Quarter Financials (in USD thousands) Revenue and GP Margin Evolution Q2 2023 Q2 2024 Change Excl. FX 200,000 Revenue Revenue 95,677 102,400 7% 9% Total Direct Cost 75,367 80,226 6% 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Gross Profit 20,310 22,174 9%
Slide 18: Freight Forwarding Volumes
Financial & Performance Highlights | Freight Forwarding Volumes Freight Forwarding Volumes Commentary Q2 2023 Q2 2024 Change H1 2023 H1 2024 Change • During Q2 2024, Aramex focused on building scale on key Air Freight Kgs 10,813,056 11,009,289 2% 21,972,042 23,431,971 7% trade lanes and opening a fe
Slide 19: Freight Forwarding Financials
Financial & Performance Highlights | Freight Forwarding Financials Quarter Financials (in USD thousands) Half Year Financials (in USD thousands) Q2 2023 Q2 2024 Change H1 2023 H1 2024 Change Revenue 97,645 111,982 15% Revenue 202,593 220,499 9% Total Direct Cost 82,233 97,845 19% Total Direct Cost 1
Slide 20: Logistics
Financial & Performance Highlights | Logistics Quarter Financials (in USD thousands) Logistics Margins Q2 2023 Q2 2024 Change H1 2023 H1 2024 Change GP% EBITDA% Revenue 28,921 29,317 1% 58,068 58,344 0% Total Direct Cost 24,484 25,953 6% 49,219 50,533 3% 36% 40 Gross Profit 4,438 3,364 (24%) 8,849 7
Slide 21: Group Financial Results
Group Financial Results
Slide 22: Product Contribution to Revenue and Gross Profit
Financial & Performance Highlights | Product Contribution to Revenue and Gross Profit Q2 2024 vs Q2 2023 (in USD million) Contribution to Group (in % of total) Revenues by Segment (USD m) 7% 2% Y-o-Y Growth 5% 7% 15% 1% 3% REVENUE 39% Express 27% +8% Q2 2024 Domestic Freight Forwarding 378 8 7 14 0
Slide 23: Group Highlights Q2 2024
Financial & Performance Highlights | Group Highlights Q2 2024 Revenue (USD 000) Gross Profit (USD 000) SG&A (USD 000) • Aramex saw solid revenue contribution from all +8% 24.9% 23.1% products with Group Revenue growing by 8% year 21.2% 20.4% on year (YoY) in Q2 2024 attributed to volume 407,410 grow
Slide 24: Regional Breakdown | Q2 2024 vs Q2 2023
Regional Breakdown | Q2 2024 vs Q2 2023 Regions (in thousands USD) GCC MENAT Europe America Rev Ctrb to Group 39% Rev Ctrb to Group 17% Rev Ctrb to Group 10% Rev Ctrb to Group 9% Rev & Grth 156,909 6% Rev & Grth 67,408 46% Rev & Grth 42,053 (19%) Rev & Grth 36,039 (8%) GP & Grth 36,339 3% GP & Grth
Slide 25: Group Free Cash Flow
Financial & Performance Highlights | Group Free Cash Flow FCF Evolution 𝐹𝑟𝑒𝑒 𝐶𝑎𝑠ℎ 𝐹𝑙𝑜𝑤 = 𝐶𝑎𝑠ℎ 𝐹𝑙𝑜𝑤 𝑓𝑟𝑜𝑚 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 − (𝐿𝑒𝑎𝑠𝑒 𝑅𝑒𝑝𝑎𝑦𝑚𝑒𝑛𝑡𝑠 + 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒 𝑅𝑂𝑈) - CapEx • Free Cash Flow (FCF) in Q2 2024 was USD 0.6 million, an improvement…
Slide 26: Focus on Improving Value Creation | H1 2024 Update
Focus on Improving Value Creation | H1 2024 Update +8% 10.4% 5.2% 0.9x $.6m yoy -10bps +40bps -0.1x 108% yoy yoy yoy yoy Revenue EBITDA ROIC Net Debt to FCF Growth Margin EBITDA
Slide 27: 2024 Financial priorities
8%-9% Revenue growth Stable Group GP Margin Develop Premium and in 2024. and SG&A structure, Deferred service unlocking further value offerings in bottom line. 2024 Financial priorities Debt repayment of USD Capex run rate at $50-70 million in 2024, 2% of revenues. reducing interest expense by USD a
Slide 28: Investor Relations Contacts
Investor Relations Contacts Nicolas Sibuet InvestorRelations@aramex.com Chief Financial Officer Investor Tel + 971 4 211 8464 Relations Dubai - UAE aramex.com/investors Anca Cighi Investor Relations Officer Page 28