Interviews
Al Arafa holdings reports positive growth in Q3
21 Dec '09
6 min read
Retail segment
Revenues for the retail segment amounted to US$ 191.2 million a decline of, 7.7% in local currency terms and 20% in USD terms compared to the 9 months ended December 2008. The decline is mainly attributed to the depreciation of the GBP against the US dollar by approximately 17%.
Moreover, the comparable figures are rather distorted due to the seasonality effect of the Christmas season sales in the UK retail market that was incorporated in the 2008 financial statement figures but not in the current 2009 figures given the change in fiscal year end of the company.
Revenues for the 3 months ended October 2009 amounted to US$ 80.5 million an increase of 18% compared to the 2Q09, mainly reflecting signs of recovery in demand as the Christmas season approaches, coupled with a marginal improvement in the average GBP/US$ rate of 3.4% Gross profit amounted to US$ 85 million reflecting a gross profit margin of 45% for the 9 months period in line with last year's margin.
It is worth mentioning that the 3Q09 witnessed a 3% improvement in retail sales margins attributed to the restructure of retail operations in the UK.
Apparel & Tailoring Segment
Apparel & Tailoring revenues of US$ 83.4 million for the 9 months ended October 2009 reflect a decline by 17% compared to the same period last year. Nonetheless sales in terms of volumes remained flat at approximately 1.9 million suits equivalent units (SEU).
The decline in top line is mainly a reflection of the shift of some of our clients to cut and make rather than total product sales. The former accounts for revenues as service cost of producing the garments where as the later accounts for revenues of the finished products including materials as well.
3Q09 revenues were US$ 25.6 million reflecting an increase of 8% compared to 2Q09 reflecting a pick-up in demand, as global sentiment improves & retailers begin to place pre Christmas orders and summer/spring season orders.
Segment operating profit for the 9 months ended October 2009 was US$ 12.9 million compared to US$ 13.7 million for the previous year, this reflect an improvement in the operating profit margin to reach 16% compared to 14% for the previous year.
Segment net profit for the 9 months ended October 2009 reached US$ 12 million compared to US$14.5 million for the comparable period.
Textile Segment
Textile segment sales reached US$ 12.5 million for the 9 months period ended October 2009, a decline by 17% compared to the same period last year. The decline was mainly attributed to a 12% decline in fabric meters sold. Nonetheless export volumes for the period witnessed a growth of 3%, also signaling a recovery in global market.
3Q09 revenues were US$ 5 million reflecting an increase of 26% compared to 2Q09 driven by an increase in export sales volume of 18% as well as a increase in the average export prices by approximately 10%.
Operating profit for the 9 months period ended October 2009 was US$ 3.2 million compared to US$ 3.3 million for the comparable period last year, this reflects the deflationary environment for raw materials that had enabled the company to lock in an incremental 5% in gross margins achieving an operating profit to sales of 25.5% during the period.
Revenues for the retail segment amounted to US$ 191.2 million a decline of, 7.7% in local currency terms and 20% in USD terms compared to the 9 months ended December 2008. The decline is mainly attributed to the depreciation of the GBP against the US dollar by approximately 17%.
Moreover, the comparable figures are rather distorted due to the seasonality effect of the Christmas season sales in the UK retail market that was incorporated in the 2008 financial statement figures but not in the current 2009 figures given the change in fiscal year end of the company.
Revenues for the 3 months ended October 2009 amounted to US$ 80.5 million an increase of 18% compared to the 2Q09, mainly reflecting signs of recovery in demand as the Christmas season approaches, coupled with a marginal improvement in the average GBP/US$ rate of 3.4% Gross profit amounted to US$ 85 million reflecting a gross profit margin of 45% for the 9 months period in line with last year's margin.
It is worth mentioning that the 3Q09 witnessed a 3% improvement in retail sales margins attributed to the restructure of retail operations in the UK.
Apparel & Tailoring Segment
Apparel & Tailoring revenues of US$ 83.4 million for the 9 months ended October 2009 reflect a decline by 17% compared to the same period last year. Nonetheless sales in terms of volumes remained flat at approximately 1.9 million suits equivalent units (SEU).
The decline in top line is mainly a reflection of the shift of some of our clients to cut and make rather than total product sales. The former accounts for revenues as service cost of producing the garments where as the later accounts for revenues of the finished products including materials as well.
3Q09 revenues were US$ 25.6 million reflecting an increase of 8% compared to 2Q09 reflecting a pick-up in demand, as global sentiment improves & retailers begin to place pre Christmas orders and summer/spring season orders.
Segment operating profit for the 9 months ended October 2009 was US$ 12.9 million compared to US$ 13.7 million for the previous year, this reflect an improvement in the operating profit margin to reach 16% compared to 14% for the previous year.
Segment net profit for the 9 months ended October 2009 reached US$ 12 million compared to US$14.5 million for the comparable period.
Textile Segment
Textile segment sales reached US$ 12.5 million for the 9 months period ended October 2009, a decline by 17% compared to the same period last year. The decline was mainly attributed to a 12% decline in fabric meters sold. Nonetheless export volumes for the period witnessed a growth of 3%, also signaling a recovery in global market.
3Q09 revenues were US$ 5 million reflecting an increase of 26% compared to 2Q09 driven by an increase in export sales volume of 18% as well as a increase in the average export prices by approximately 10%.
Operating profit for the 9 months period ended October 2009 was US$ 3.2 million compared to US$ 3.3 million for the comparable period last year, this reflects the deflationary environment for raw materials that had enabled the company to lock in an incremental 5% in gross margins achieving an operating profit to sales of 25.5% during the period.
Al Arafa
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