The company attributed the decline in net profit to currency depreciation in some markets and interest charges associated with the acquisition of the “MyUS” platform, in addition to the slight decline in group revenue, which is reflected in net profits.
Given the negative impact of exchange rates and currency depreciation in some markets, the company said it acted quickly to hedge this risk and move to more US dollar-denominated contracts.
On the revenue side, the company recorded 1% year-on-year growth to reach MAD 1.43 billion, 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.
Revenues continued to be impacted by currency fluctuations, inflationary pressures and the normalization of freight flows around the world, but Aramex said it was able to show resilience in volumes and improve margins.
Gross margin for the first quarter of 2023 increased by 4% to 358 million dirhams, compared to 344 million dirhams in the first quarter of 2022, while the gross margin for the first quarter of 2023 reached 25%.
Organic business GA and selling expenses, excluding the effect of myUS, decreased 3% year-on-year, while Group consolidated GA and selling expenses increased 6%, due to recognition of costs related to the acquisition of myU. S”.
The company also confirmed that the structure of general and administrative expenses and organic selling expenses of the group, as a percentage of turnover, remained stable.
Commenting on the state of the industry during the first quarter, Aramex CEO Othman Al-Jeddah said, “The global logistics services industry during the first quarter of 2023 continued to face many challenges. economic challenges posed by inflation, high costs and high interest rates, in addition to declining shipments and fluctuating exchange rates.
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