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Dubai-based logistics operator Aramex posted a 57% drop in Q2 2023 net profit to 18.96 million dirhams ($5 million) on weak market conditions including cost of inflation and foreign exchange (FX) fluctuations.
The profit came in well below analysts' mean estimate of AED36.67 million, according to data provider Refinitiv.
Revenue for the period was down 8% to AED 1.38 billion, the Dubai Financial Market-listed company said in a statement on Wednesday.
For H1 2023, Aramex made a net profit of AED 42.8 million, 53% lower on year.
CEO Othman Aljeda said Aramex performed robustly in H1 despite continued challenges "in an environment characterized by cost inflation, lower freight rates, softening shipment volumes and FX fluctuations".
Abu Dhabi sovereign wealth fund ADQ holds a 22.32% stake in Aramex, which it transferred to ADQ-owned Abu Dhabi Ports Co. in early 2022.
(Writing by Brinda Darasha; editing by Seban Scaria)China
