Home / Knowledge / News / Apparel/Garments / Al Arafa's retail segment net profit grows 81% in H1
Al Arafa's retail segment net profit grows 81% in H1
16
Oct '12
Al Arafa’s retail segment net profit grows 81% in H1

Al Arafa Holdings for Investments & Consultancies released its H1 2012 financial results for the 6-months period ending July 31st, 2012.

Financial Highlights for Arafa Holding Consolidated Results

  • Arafa Holding reported Consolidated Net Revenues of USD 127.0 million compared to USD 134.6 million in H1 2011. The decline in sales is mainly attributed to the retail segment’s restructuring that is currently taking place in the UK whereby some reduction for the less profitable business units had taken place.
  • In addition to that, reduced business at Egyptian Portuguese (EP), Arafa’s subsidiary in Portugal, which contributed only USD 2.5 million to revenues in H1 2012, versus USD 10.4 million in H1 2011 has affected revenues. This is a result of increasing the size of the direct business between external clients in Spanish market and the garment manufacturing segment in Egypt which was overall positively reflected on profitability of the retail segment which doubled in H1 2012 compared to the same period last year.
  • The retail segment also showed a strong performance supported by local retail operations whereby both local arms, Concrete for Ready Made Garments S.A.E and Euromed for Trade and Marketing S.A.E showed improved performance. Concrete’s net profit showed a 51% growth in H1 2012 compared to H1 2011. It’s worth noting that Euromed had its first licensed Pal Zileri store open in April 2012 in Lebanon Street at Mohandesin marking the first opening for such branded store in Egypt.
  • Net Profit after Tax reached USD 4.3 million in H1 2012 compared to USD 4.0 million in H1 2011, thus yielding a net profit margin of 3.4% compared to 3.0% in H1 2011.

Breakdown by Activity

Retail Segment

Retail Segment witnessed significant improvements driven by local retail coupled with improved operations at the UK subsidiary on the back of effective re-organizational efforts and cost cutting measures.

As a result, the retail segment had its net profit grow by 81% to reach USD 882K during H1 2012 compared to USD 486K during the same period last year.

Apparel & Tailoring Segment (“A&T”)

The Apparel & Tailoring segment maintained last year’s revenue level almost unchanged, however with more focus on external clients. A cautious customer sentiment had some effect on the A&T segment’s profitability; however we believe that the following quarters should indicate further improvements over the remaining period of the year.

Textiles Segment

The Textiles Segment witnessed a 9% growth in its revenues during H1 2012. On the net profit, however, the segment witnessed a decline of USD 254 K.

Al Arafa for Investments and Consultancies (“Arafa Holding”) is a leading player in the Textiles & Apparel industry operating a vertically integrated business model that places the Group as one of the largest export oriented and integrated apparel and textiles manufacturers in Egypt and the Middle East, and a prominent apparel retailer and wholesaler in Egypt and the UK.

Al Arafa Holdings


Must ReadView All

Indian govt approves special package for leather, footwear

Textiles | On 16th Dec 2017

Indian govt approves special package for leather, footwear

The Union Cabinet chaired by PM Narendra Modi has approved a special...

EU parliament resolution calls for Cambodia sanctions

Apparel/Garments | On 16th Dec 2017

EU parliament resolution calls for Cambodia sanctions

Following the ongoing crackdown in Cambodia on the opposition and...

Affordable prices to be hit if US pulls out of NAFTA: NRF

Apparel/Garments | On 16th Dec 2017

Affordable prices to be hit if US pulls out of NAFTA: NRF

US retailers’ ability to offer consumers quality products at...

Interviews View All

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.1%
No
13.8%
Skip
18.1%

Total Votes: 94

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.8%
No
29.8%
Skip
7.4%

Total Votes: 94

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
9.6%
Skip
3.2%

Total Votes: 94

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.9%
No
8.5%
Skip
9.6%

Total Votes: 94


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search