Aramex quarterly profit hit hard by Dubai floods

Aramex

The net profits of Dubai-listed courier company Aramex fell 85 percent in the second quarter of 2024 due to flooding in the emirate, leading to operational disruptions and a slowdown in business.

Earnings for the second quarter stood at AED2.9 million ($789,558), compared to AED18.9 million a year earlier.

Revenue for the three months rose 8 percent year on year to AED1.5 billion.

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The loss of productive days and the seasonality impact in Q2 was estimated at AED45 million in lost revenue and AED8.8 million in lost net income, the company said in a statement. In addition, the devaluation of the Egyptian pound led to a negative forex impact of AED5.1 million.

However, net profit for the first half increased 15 percent to AED49.4 million from AED42.8 million in the same period last year.

The top line grew 8 percent yearly to more than AED3 billion, driven by the addition of new customers and higher volume.

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Segment-wise, the international express revenue jumped 10 percent year on year to AED1.2 billion as it handled 14.4 million shipments in the first half.

Domestic shipment was up 5 percent annually to 51 million, with revenue rising 5 percent and 6 percent year on year, respectively, in Q2 and H1 2024.

Aramex forecasts revenues to grow by 8 to 9 percent, with a gross profit margin at 24 to 25 percent in 2024.