Arafa achieves operating profits of US$14 mn during FY'11
Al Arafa for Investments & Consultancies (Arafa Holding) released its FY 2011 financial results for the year ending January 31st, 2012.
Arafa Holding achieved operating profits of USD 14 million during FY 2011 compared to USD 16 million in FY 2010.
Despite of the major challenges the group faced during FY 2011, the disruptions that followed the Egyptian revolution and the concerns that the export markets and international customers had with regards to the political situation and their impact over the manufacturing and export activities; FY 2011 still witnessed a number of accomplishments for Arafa Holding, where it succeeded in effectively managing the crisis, maintaining customers' confidence and further increasing the revenues of the garment manufacturing segment during this year.
Arafa Holding celebrated the inauguration of its new state of the art factory, Camegit for Garment Manufacturing S. A. E in Beni Sweif, a 50:50 Joint Venture with Ermenegildo Zegna the Italian men's wear group. The company is specialized in producing high quality cotton shirts with the well known of quality, Egyptian cotton.
On another front; Concrete managed to renew and open all the stores that were affected during the revolution whether from theft or damage (except for Arcadia Mall store) in addition to adding three new stores during 2011, one of which is the flagship store in El Mohandesin Area.
Concrete also launched its new Made-to-Measure service during the year to cater for customers' needs and introduced a new product line for “New Born” besides venturing into product variations to meet the demands of a larger customer base such as providing slim fit line and mix and match suits.
It is worth noting that Concrete had also received a non-binding expression of interest from a leading local private bank to acquire a 38% secondary stake of its shareholdings at an initial total equity valuation of EGP 400 million.
Regarding the group's restructuring process that was announced early 2011; it had some delays, yet is currently progressing as planned where subsidiaries will be re-organized under 3 sub-holdings classified by market segments rather than by operational activities. The legal and financial restructuring processes are currently being finalized whereby new structure and reporting system are expected to be applied by mid 2012.
Arafa Holding reported Consolidated Net Revenues of USD 278 million compared to USD 283 million in FY 2010. The y-o-y 13% drop in revenues during Q1 2011, as a result of the political unrest that took place in Egypt and the region, was smoothed out during the remaining quarters, where a healthy and quick rebound took place in local and international operations.
As a result, Arafa Holding ended up the year with a minor drop of only 1.8% in revenues which reflects the efforts of the company, eyeing a strategic goal of retaining its customer base and long term relationships.