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

Textiles | On 6th Dec 2016

Garments, yarn export entitlement quota extended for 1 yr

Indian government has extended the export entitlement quota for...

Textiles | On 6th Dec 2016

Cash inflow will revive sales: Textile industry

The textile industry representatives are hopeful of revival of...

Courtesy: SIMA

Textiles | On 6th Dec 2016

Amma gave special attention for textile growth in TN: SIMA

Former Tamil Nadu chief minister J Jayalalithaa paid special...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Wendell Rodricks
Wendell Rodricks

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

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 2016

December 2016

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

SUBSCRIBE


Browse Our Archives

GO


Advanced Search