Aramex’s net income fell againin 3Q 2023: UAE-based logistics provider Aramex’ s net income fell 76% y-o-y to AED 9.6 mn in 3Q 2023, attributed to heightened interest costs related to the USD 265 mn acquisition of Florida-based MyUS, according to an earnings release (pdf). The normalized net income — excluding the FX impact and finance loan expenses — fell 23% y-o-y decline to AED 30.4 mn during the quarter. The company’s revenues during the period fell 5% y-o-y to AED 1.35 bn amid currency fluctuations, macroeconomic challenges, and subdued global retail activity in some of its markets, according to the release.

The breakdown: Its freight forwarding division saw revenues fall 16% y-o-y to AED 367.9 mn during the quarter, while its logistics and supply solutions division witnessed a 5% y-o-y decline to AED 104.8 mn. Revenues reported for its domestic express services also fell 5% y-o-y to AED 352.6 mn on the back of currency fluctuations, according to the release. The international express unit — including revenues from MyUS — was the only division that saw revenues grow 4% y-o-y to AED 511.9, due to improvements in linehaul costs, cost optimization measures, and consolidation with MyUS.

The good news: The GCC is a strong market. The GCC region is continuing to see an increase in consumer spending, the company said, adding that it saw a 21% y-o-y increase in gross income during the quarter.

Looking ahead: “Our primary focus will be to deliver outstanding services to customers,” by continuing to enhance trade lanes across all business lines, and focus on “B2B, direct brands,

SMEs, and premium offerings such as same and next-day deliveries,” Aramex CEO Othman Al Jeda said.

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