Aramex and EMSTEEL Post Record Revenues in FY24

Two UAE companies – EMSTEEL and Aramex – which are listed on Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM) respectively, have raked in bumper profits during the financial year 2024.

While EMSTEEL, one of the largest publicly traded steel and building materials manufacturers in the region, maintained overall steel production volumes in line with the level attained during 2023 and delivered total revenues of $2.26 billion, approximately 6% lower than the $2.42 billion, Aramex reported revenue of $1.72 billion with a strong performance in Q4-2024, revenue up 11% y-o-y to $460 million.

EMSTEEL has attributed the decrease in revenue to various factors, including fluctuations in global steel prices, increased competition, and changing demand trends driven by economic uncertainties in key markets.

Profits Hit

The company’s profitability margins have been hit by an increase in low-priced Chinese steel exports, which have directly or indirectly impacted prices in several of the Group’s key markets, including the GCC and important export destinations like Europe and the US.

Despite the challenging market environment EMSTEEL realised a profit before tax of $117.62 million and net profit after tax of $106.72 million. The Group further strengthened its balance sheet, realising a positive net cash generation of $109.18 million resulting in a balance sheet free of net debt.

EMSTEEL recorded EBITDA of $242.85 million, with a margin of 10.9%, compared with 14.2% in 2023. The company’s FY24 profitability was supported by an improvement of the Group’s EBITDA during the fourth quarter of the year, amounting to $67.25 million, up 81% compared to the third quarter of 2024.

Revenue from the Group’s Emirates Steel division totalled $2.07 billion during 2024, generating an EBITDA of $185.14 million.

Revenue from the Group’s Emirates Cement division was $217.87 million with an EBITDA of $57.72 million. Within the Cement division the Pipes & Other segment is reported as Assets held for Sale as a divestment process is ongoing. Revenue for this segment amounted to $42.47 million in 2024.

Aramex

For Aramex, the fiscal year growth was broad-based across all product lines with International and Domestic Express, Freight Forwarding and Contract Logistics all reporting y-o-y growth driven by higher shipment volumes and further gains in market share.

The GCC and MENAT regions remained pivotal, highlighting the strength of Aramex’s home markets. GCC and MENAT both grew double digit in revenue and gross profitability in 2024 compared to 2023. Meanwhile, Oceania continued its turnaround journey, delivering almost 50% y-o-y growth in revenues and gross profitability in 2024.