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Aramex profit drops 76% on steep interest rate hike

Dubai's Aramex said the GCC region contributed 40 percent of the group's revenue Aramex
Dubai's Aramex said the GCC region contributed 40 percent of the group's revenue

Dubai-based courier company Aramex said net profit fell 76 percent in the third quarter of 2023.

The fall was led by the steep increase in interest rates since Aramex acquired MyUS, a shipping and logistics company.

Net profit reached AED9.64 million in the third quarter of 2023, compared to AED39.64 million a year ago.

In the third quarter, Aramex reported revenue of AED 1.35 billion, down five percent year on year due to currency fluctuations, macroeconomic challenges, and subdued global retail activity in certain markets.

Excluding the impact of foreign exchange translation, the decline in revenue was two percent year on year.

The GCC region contributed 40 percent of the group’s revenue.

“The slight softening in revenue can be attributed to global headwinds, FX translations and reduced retail activities. However, with the resilience of consumer spending in the GCC, the region continues to be a key driver of growth, reporting a 21 percent year on year growth in gross profit in Q3 2023,” said CEO Othman Aljeda.

Aramex aims to expand its quality business lines, focusing on B2B, direct brands, SMEs, and premium offerings such as same and next-day deliveries in the fourth quarter, he added.

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