Dubai’s logistics and transportation provider, Aramex, reported H1 2023 revenue of Dh2.8 billion, marking a 5% YoY decline, as revealed on Wednesday. Net profit for the period reached Dh42.87 million, showing a substantial 53% drop from the previous year.
This decrease was attributed to a combination of softened revenue and increased finance expenses linked to the MyUS acquisition.
Othman Aljeda, Aramex’s CEO, acknowledged the company’s robust performance amidst a challenging landscape marked by cost inflation, lower freight rates, shipment volume reductions, and foreign exchange fluctuations.
In the International Express business, H1 2023 gross profit reached Dh372 million, reflecting a 1% YoY growth.
However, the Domestic Express business faced downward pressures in both revenue and gross profit, primarily due to foreign exchange translation.
Excluding this impact, revenue demonstrated a 3% growth in the second quarter.
Amidst the industry trend of decreased volumes, Aramex’s Q2 2023 revenue experienced an 8% decline, although excluding currency exchange influence, the reduction was 5%.
The company pointed out that the fewer working days in Q2 2023, caused by the shift of Islamic public holidays, contributed to this pattern.
Despite a 3% and 9% reduction in gross profit for H1 and Q2 2023 respectively, the overall gross profit margin remained steady at 25% for both periods.
