Aramex Pjsc · DFM:ARMX
Aramex Pjsc — Aramex — Q4 2023 Earnings Presentation
28 slides from Aramex Pjsc's earnings presentation, 2024
Slide 1: Investor Presentation Q4 2023 Financial Results
INVESTOR PRESENTATION Q4 2023 Financial Results
Slide 2: 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 Q4 2023 3. Q4 & FY 2023 Product Breakdown 4. Q4 & FY 2023 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 1.55B USD 913M Employees Countries Offices Revenues FY 2023 Market Cap on 31 Dec 2023 International Express Freight Forwarding With Aramex International Express, sending time-se
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: 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 7: 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 8: Q4 2023 Key Highlights
Q4 2023 Key Highlights
Slide 9: 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 10: Product Breakdown
Product Breakdown
Slide 11: International Express Volumes
Financial & Performance Highlights | International Express Volumes International Express Volumes (in million of shipments) Geographic contributions to int’l express volumes in Q4 2023 +5% 31% 22.2 23.3 0.0 7.6 -0.7 0.1 0.0 0.2 0.0 5.8 2.6 +31% -0.3 7.6 5.8 5.4 5.5 4.9 Q4 Q1 Q2 Q3 Q4 FY 2022 FY 2023
Slide 12: International Express Financials
Financial & Performance Highlights | International Express Financials Quarter and Full Year Financials (in USD thousands) GP Margin GP Margin Q4 2022 Q4 2023 Change Revenue 165,427 178,576 8% 40 36% 34% Total Direct Cost 32% 34% 34% 112,604 117,145 4% 35 31% 32% 35 32% Gross Profit 52,823 61,431 16%
Slide 13: Domestic Express Volumes
Financial & Performance Highlights | Domestic Express Volumes Quarterly Domestic Volumes (in million of shipments) Geographic contributions to domestic volumes in Q4 2023 Group Domestic volumes 0% 0% 100.1 100.0 26.5 26.6 0% 0.0 0.0 -0.2 0.0 0.0 0.0 0.3 26.5 24.6 24.2 24.5 26.6 Q4 Q1 Q2 Q3 Q4 FY FY
Slide 14: Domestic Express Financials
Financial & Performance Highlights | Domestic Express Financials Quarter and Full Year Financials (in USD thousands) GP Margin Change Q4 2022 Q4 2023 Change Excl FX 24% 25% 24% 25 21% 22% 20% 30 25% Revenue 102,850 98,493 (4%) (1%) 20 22% Total Direct Cost 76,823 77,136 0% 15 20 10 Gross Profit 26,0
Slide 15: Freight Forwarding Volumes
Financial & Performance Highlights | Freight Forwarding Volumes Freight Forwarding Volumes Commentary Q4 2022 Q4 2023 Change FY 2022 FY 2023 Change • Overall, Aramex's Freight-Forwarding business was Air Freight Kgs resilient in a challenging market characterized by the 11,579,801 11,958,881 3% 52,5
Slide 16: Freight Forwarding Financials
Financial & Performance Highlights | Freight Forwarding Financials Quarter Financials (in USD thousands) Full Year Financials (in USD thousands) Q4 2022 Q4 2023 Change Excl. FX FY 2022 FY 2023 Change Excl. FX Revenue 114,715 104,535 (9%) (9%) Revenue 458,633 407,305 (11%) (10%) Total Direct Cost 97,
Slide 17: Logistics Financials
Financial & Performance Highlights | Logistics Quarter Financials (in USD thousands) Logistics Margins Q4 2022 Q4 2023 Change Excl FX FY 2022 FY 2023 Change Excl FX Revenue 31,441 30,184 (4%) 0% Revenue 122,477 116,791 (5%) 2% Total Direct Cost 26,349 24,430 (7%) Total Direct Cost 103,682 99,016 (5%
Slide 18: Logistics Margins and 2024 Focus
Financial & Performance Highlights | Logistics Logistics Margins • High-growth sectors retail, e-commerce and industrials remain the top revenue contributors to the growth of the Logistics product. GP% EBITDA% • The UAE operations in particular have made significant progress, while management remain
Slide 19: Group Financial Results
Group Financial Results
Slide 20: Product Contribution to Revenue and Gross Profit
Financial & Performance Highlights | Product Contribution to Revenue and Gross Profit Q4 2023 vs Q4 2022 (in USD million) Contribution to Group (in % of total) Revenues by Segment (USD m) 7% Y-o-Y 8% -4% -9% -4% -4% 1% Growth REVENUE 24% 43% Express Q4 2023 Freight Forwarding -1% Domestic 418 415 Lo
Slide 21: Group Highlights Q4 2023 & FY2023: Revenue and Gross Profit
Financial & Performance Highlights | Group Highlights Q4 2023 & FY2023 Revenue (USD 000) Gross Profit (USD 000) -1% 24.8% 25.5% 24.0% 25.1% 1,614 1,550 1,591 -1% +3% 418 415 387,819 388,534 400,973 +2% 103,674 105,845 Q4 2022 Q4 2023 FY 2022 FY 2023 FY 2023 excl FX Q4 2022 Q4 2023 FY 2022 FY 2023 FY
Slide 22: Group Highlights: SG&A and EBITDA
Financial & Performance Highlights | Group Highlights Q4 2023 & FY2023 SG&A (USD 000) EBITDA (USD 000) 20.9% 19.5% 19.9% 20.6% 9.7% 13.0% 10.4% 11.0% -1% +33% +2% 321,674 319,561 -7% 53,752 167,185 170,923 40,420 87,167 81,017 Q4 2022 Q4 2023 FY 2022 FY 2023 Q4 2022 Q4 2023 FY 2022 FY 2023 X% Repres
Slide 23: Group Highlights: Net Income
Financial & Performance Highlights | Group Highlights Q4 2023 Net Income (USD 000) 2.2% 5.0% 2.8% 2.3% +127% -22% 20,908 45,030 35,206 9,221 Q4 2022 Q4 2023 FY 2022 FY 2023 X% Represents Margin in % of Revenue • Q4 2023 Net Income doubled compared to the same period last year, driven by the growth i
Slide 24: Regional Breakdown | Q4 2023 vs Q4 2022
Regional Breakdown | Q4 2023 vs Q4 2022 Regions (in thousands USD) GCC MENAT Europe America Rev Ctrb to Group 37% Rev Ctrb to Group 18% Rev Ctrb to Group 11% Rev Ctrb to Group 10% Rev & Grth 151,776 (8%) Rev & Grth 73,242 38% Rev & Grth 44,133 (17%) Rev & Grth 39,575 (4%) GP & Grth 37,981 6% GP & Gr
Slide 25: Regional Breakdown | FY 2023 vs FY 2022
Regional Breakdown | FY 2023 vs FY 2022 Regions (in thousands USD) GCC MENAT Europe America Rev Ctrb to Group 39% Rev Ctrb to Group 14% Rev Ctrb to Group 12% Rev Ctrb to Group 10% Rev & Grth 598,676 (6%) Rev & Grth 212,331 0% Rev & Grth 192,767 (5%) Rev & Grth 158,582 54% GP & Grth 145,141 13% GP &
Slide 26: 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 in Q4 2023 was USD 16 million, higher than Q4 2022…
Slide 27: Healthy balance sheet, conservative leverage, and strong cash position
Financial & Performance Highlights | Healthy balance sheet, conservative leverage, and strong cash position Balance Sheet Highlights (in USD thousands) 31 Dec 2022 31 Dec 2023 Change Change % Current assets 594,402 526,053 (68,349) -11.5% Assets held for sale 1,789 1,334 (455) -25.4% Non-current ass
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