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UAE-based freight forwarding and logistics outfit Aramex saw its bottomline fall 22% y-o-y to AED 129.3 mn in 2023, according to an earnings release (pdf). The company’s topline also declined 4% during the same period to AED 5.7 bn.
On a quarterly basis: Aramex’s net income more than doubled in 4Q 2023, soaring 127% y-o-y to AED 76.8 mn. Revenues for the same period saw a marginal 1% y-o-y decline to AED 1.53 bn.
The story behind the numbers: Aramex’ reduced yearly performance was mainly attributed to financing costs for an acquisition loan taken in 4Q 2022, the company said. Aramex also cited falling rates in the global freight forwarding market as bringing about reduced performance in its international operations, despite an uptick in revenues in the company’s international express operations on the back of new clients. Domestic performance was impacted by currency fluctuations, the company also said.
Aramex is offering workarounds to shipments impacted by Red Sea disruptions: The company has deployed a “large trucking fleet” to load shipments from Asia at Dubai, UAE and Dammam, KSA, while doing the same for shipments from Europe via Port Said, Egypt, Aramex CEO Othman Aljeda said.
