Dubai: Shares in courier company Aramex fell nearly 5 per cent on Wednesday following the announcement of a 7 per cent rise in third quarter net profit that failed to meet expectations.
The Dubai Financial Market (DFM)-listed company made Dh74.6 million in the three months to September 30, compared to Dh69.5 million in a year ago in the same period, it said in an emailed statement, adding that the Arab Gulf market led a portfolio-wide increase in revenue.
But shares closed down 4.38 per cent to Dh3.06 following the announcement. Reuters reported two analysts had forecast third quarter profit would be between Dh79.7 million and Dh88.5 million.
Chief Executive Hussain Hachem said low oil prices and weak global currencies had dented the third quarter for Aramex.
“Revenue growth in the third quarter was stable for the business, despite fluctuating oil prices and weaker global currencies,” he said in a statement.
Aramex revenue for the period was Dh937 million, up 2 per cent compared to Dh921 million a year ago.
The GCC (Gulf Cooperation Council) was the single largest contributor to the company’s revenues, despite a drop in the number of working days due to public holidays, Aramex said.
There were positive results across the business that includes operations in Africa and Asia-Pacific, and e-commerce was the highest performing segment, Aramex said.
The company signalled that it would make further investments before the end of the year.
“We have entered the final quarter of the year with a strong focus on furthering our global growth strategy, pursuing strategic investments in markets both locally and abroad,” Hachem stated.
