The company attributed this decline in net profits to the depreciation of the currency in some markets, and the interest expenses associated with the acquisition of the “MyUS” platform, in addition to the slight decrease in group revenues, which was reflected in the net profits.
Given the negative impact of foreign exchange rates and currency depreciation in some markets, the company said it moved quickly to hedge this risk and shift to more contracts denominated in US dollars.
With regard to revenues, the company recorded a growth of 1 percent on an annual basis to reach 1.43 billion dirhams, and these revenues were driven by the stable performance achieved by the international express services sector and the flexibility of the shipping and logistics services and supply chain management solutions sectors.
Revenue continued to be affected by currency fluctuations, inflationary pressures and the normalization of freight flows around the world, however, Aramex said it was able to show resilience in its volumes and improvement in margins.
Gross profit in the first quarter of 2023 increased by 4 percent to 358 million dirhams, compared to 344 million dirhams in the first quarter of 2022, while the gross profit margin for the first quarter of 2023 reached 25 percent.
General and administrative expenses and selling expenses for the organic business, excluding the impact of myUS, decreased by 3 percent year-on-year, while group general and administrative expenses and selling expenses increased by 6 percent, due to accounting for costs related to the acquisition of the MyUS platform. S”.
The company also confirmed that the structure of general and administrative expenses and organic selling expenses of the group, as a percentage of revenues, remained stable.
Commenting on the state of the sector during the first quarter, Aramex CEO Othman Al-Jeddah said, “The logistics services sector globally during the first quarter of 2023 continued to face many economic challenges posed by inflation, high costs and interest rates, in addition to the decline in The number of shipments and fluctuations in currency exchange rates.
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