Aramex, a company that offers solutions for logistics and transportation, announced on Wednesday that its revenue for the first half of 2023 was $2.8B, showing a 5% decrease compared to the previous year.
During the same period, the net profit was $42.87M, marking a 53% decrease from the corresponding period in the previous year. The company attributed the decrease to a “trickle-down impact from topline softening, as well as an increase in finance expenses associated with the MyUS acquisition”.
Othman Aljeda, CEO of Aramex, said: “Reflecting on Aramex’s financial results for the first half of 2023, we performed robustly, despite continued challenges in an environment characterised by cost inflation, lower freight rates, softening shipment volumes and FX fluctuations.”
In H1 2023, the International Express division of the company recorded a gross profit of $372M, showing a 1% increase year-on-year, according to Gulf News.
On the other hand, the Domestic Express business experienced downward pressures on both revenue and gross profit in both the half-year period and Q2 due to currency translation effects. Excluding the impact of foreign exchange, revenue saw a 3% growth during the second quarter.
Mirroring the global trend of declining volumes, the company’s revenue for Q2 2023 also decreased by 8%. However, when excluding the influence of currency exchange, the Q2 revenue drop was reduced to 5%.
The company highlighted that Q2 2023 had fewer working days, primarily because Islamic public holidays, observed in certain markets during the quarter, shifted compared to the same period in the previous year when these holidays fell in Q3 2022.
Despite experiencing a 3% and 9% year-on-year reduction in gross profit for H1 and Q2 2023 respectively, the overall gross profit margin remained consistent at 25% for both periods.
