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Dubai-based courier and logistics company Aramex saw its profit fall by 49% to AED 23.909 million ($6.51 million) in the first quarter of 2023 due to factors including currency devaluation as well as interest associated with a US-based acquisition last year.
The company said due to some of the negative foreign currency and devaluation impact in some markets, it had moved to hedge exposures and into more US-dollar denominated contracts.
Revenue for the first quarter fell marginally to AED 1.431 billion from AED 1.449 billion.
Aramex CEO Othman Aljeda said the industry had faced headwinds from cost inflation, base rate rises, softening shipment volumes and FX fluctuation during the first quarter of 2023.
“We continued to both drive revenue quality and benefit from our sustained investment in efficiency, and our performance vs industry means we are confident in unlocking the potential of our rebalanced business model.”
Results posted to Dubai Financial Market (DFM) showed that Aramex’s International Express business, incorporating its US-based acquisition MyUS and Shop & Ship saw its revenues grow by 1%, while domestic revenue fell by 4%.
Domestic revenue were impacted by foreign exchange impacts in Egypt, Lebanon, South Africa as well as a revenue decline in Oceania, where a restructuring plan is in progress, the company said.
The company completed the acquisition of MyUS last year.
(Writing by Imogen Lillywhite; editing by Daniel Luiz)