Dubai-based logistics firm Aramex is set to launch an appeal after a Moroccan court ruled in favour of one of its customers in a $40 million fire damage case.

A statement to the Dubai Financial Market (DFM), signed by chief executive officer Bashar Obeid, said the courier firm has the right to explore all legal options to deal with all developments related to the lawsuit.

Last September, a fire broke out at the company’s warehouse facility in Casablanca. Aramex later confirmed that a customer had filed a $40 million lawsuit for moral damages and loss of goods resulting from the incident.

Video: Court rules against Dubai’s Aramex in $40 million lawsuit

Net profit decline

Aramex posted a profit of 285 million dirhams ($77.6 million) in 2020, down from 497 million dirhams in 2019.

Explaining the reasons for the profit decline, the company cited a number of factors, including higher long-distance transportation costs and expenses related to scaling of last-mile delivery due to the e-commerce surge during the coronavirus pandemic.

Its warehouse facility in the Port of Beirut was also damaged in a massive explosion that destroyed the port area and a large part of the Lebanese capital in August 2020. Aramex estimated the cost of damage to its facility at $2.7 million.

(Reporting by Imogen Lillywhite; editing by Cleofe Maceda)

Imogen.Lillywhite@refinitiv.com

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