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
