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Egypt garment exporter Arafa sees profit drop

Arafa Holding, Egypt's biggest garment exporter, said on Tuesday consolidated net profit fell to $4.83 million for the three months to July 31.

The company changed its financial year to end in January instead of March, and as a result, no direct comparisons could be made. For the three months to September 30, 2008, Arafa reported net profit of $8.66 million.

Arafa, which makes and retails garments in Egypt and Europe, said sales to its key British market had been hurt by a fall in the value of the British pound and by recession.

Despite a global shrinkage in retail spending, the company said its results showed "extreme resilience and was still able to post positive operating results."

The company reported sales of $80.0 million compared with $105.1 million for the three months to end-September 2008.

Arafa's shares fell 3.5 percent to 0.83 Egyptian pounds on Tuesday.


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Reuters
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