Dubai-based logistics company Aramex sees profits fall 49%

Profit of Dubai-based courier and logistics company Aramex fell 49% to AED23.909 million (US$6.51 million) in the first quarter of 2023, amid factors including currency depreciation and interest related to a US takeover last year year is due.

The company said it has shifted to hedging risk and writing more US dollar-denominated contracts due to the negative impact of foreign currency and devaluation in some markets.

Revenue fell slightly to AED1.431 billion in the first quarter from AED1.449 billion.

Aramex CEO Othman Aljeda said the industry faced headwinds in the first quarter of 2023 from cost inflation, increases in interest rates, falling shipping volumes and exchange rate fluctuations.

“We have both continued to improve revenue quality and benefited from our sustained investments in efficiency, and our performance relative to the industry shows that we are confident in realizing the potential of our rebalanced business model.”

Results published on Dubai Financial Market (DFM) showed that revenue from Aramex’s International Express business, which also includes U.S.-based acquisitions MyUS and Shop & Ship, rose 1%, while domestic revenue rose 4% % decreased.

Domestic sales were impacted by foreign exchange effects in Egypt, Lebanon and South Africa, as well as a sales decline in Oceania, where a restructuring plan is in the works, the company said.

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