CAIRO (Reuters) - Arafa Holding, Egypt's biggest garment exporter, reported a decline in net profit for the year to end-January of $10.2 million, saying the sluggish economy in its key British and European markets weakened profit.
The company recently changed its financial year, making a direct comparison difficult.
Arafa said revenue declined 14.5 percent to $332 million, without providing the earlier figure. For the ten months to end January 2009, Arafa reported profit of $27 million.
The firm, which makes and sells garments in Egypt and Europe, said sales were hit by recession and a fall in the value of both the British pound and euro against the dollar.
"The global economic recession resulted in either lower or at best flat sales volumes, revenues and profit margins as consumers significantly curtailed spending particularly for discretionary items," the firm said in a statement.
British retail sales represent about 40 percent of Arafa's consolidated revenue.
"The results were negatively impacted by currency devaluation against the U.S. dollar in key operations, with the British pound devaluing against the dollar by 12.79 percent," the statement said.
The company changed its financial year to end in January instead of March.
Arafa's shares were 1.5 percent lower by 0913 GMT. The benchmark index was also down 1.5 percent.
Reuters Africa
