Aramex 1Q 2023 net income falls 49% y-o-y, revenues remain almost flat: Global logistics provider Aramex’s net income plunged 49% y-o-y to AED 47.3 mn in 1Q 2023, amid a decline in global shipping volumes and inflationary pressures, according to its earnings release (pdf). Interest expenses associated with its acquisition of e-commerce platform MyUS and currency devaluations in some of Aramex’s markets also dragged down revenues, which fell marginally by 1% to AED 1.43 bn, according to the statement.

The breakdown: Its freight forwarding division saw revenues fall 1% to AED 385 mn, while its logistics and supply chain solutions division saw revenues fall 5% to AED 107 mn. Revenues for domestic express fell 4% to AED 362 mn on the back of FX impacts in Egypt, Lebanon, South Africa and other MENAT countries, the earnings release said. The International Express unit, on the other hand, saw 1% growth in revenues to AED 567 mn. Performance was buoyed by the company’s operations in the GCC — which accounted for 39% of total revenues — and “solid revenue growth in Europe and North America outbound markets,” the earnings release added.

Also helping buoy operations: The company moved to hedge exposures to FX fluctuations by taking on more USD-denominated contracts, the company said.

Looking ahead: “The continued growth in the GCC economies, and the expectation that inflationary pressures around the world may peak and then decline significantly show some signs of optimism towards the end of the year,” CEO Othman Aljeda said, adding that the key differentiator for the company in the months ahead is its “ability to invest in technology, along with our geographic and business line diversification which offers competitive advantage.”

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