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Dubai’s Aramex posts 5% drop in Q1 net profit

Dubai’s Aramex posts 5% drop in Q1 net profit

The company made a net profit of $25m in the three months to March 31

Dubai-based courier Aramex reported a 5 per cent fall in first-quarter net profit on Sunday.

The company made a net profit of Dhs91.8m ($25m) in the three months to March 31, it said in a statement. This compares with a profit of Dhs96.9m in the same period a year earlier.

EFG Hermes and SICO Bahrain forecast the firm would make a quarterly net profit of Dhs109.1m and Dhs105.6m respectively.

Not accounting for the provision, first quarter net profit would have been Dhs105.1m, an 8.5 per cent rise from the same period of last year, it said.

The firm’s revenue during the period was Dhs1.1bn, up 7 per cent from Dhs1bn in the same period a year ago.

Aramex said its strong revenue performance in the first quarter was driven by growth across Asia Pacific, while revenue in other regions were hurt by currency fluctuations, particularly the Egyptian pound.

Egypt’s central bank abandoned its currency peg of 8.8 pounds to the U.S. dollar on Nov. 3, hoping to unlock currency inflows and bring back foreign investors who were driven away after the 2011 uprising that ousted Hosni Mubarak.

The float sent its currency falling the most in the world in the past six months.

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