Arafa Holding has announced net profits of US$4 million for the first half of 2011, a 47.4 per cent drop on the same period last year.
Full financial statements have not been released yet, but the company said in a press release that its 2Q2011 revenues increased by 22.3 per cent over last year, resulting in a 1H2011 revenue growth of 2.7 per cent to reach US$134.6 million.
Earnings before interest, taxes, depreciation and amortization reached US$11.2 million with a margin of 8.3 per cent, versus US$13.1 million with a margin of 10.0% during the same period last year.
The garment maker's operating profits registered US$6.9 million in 1H2011 representing a margin of 5.1 per cent compared to US$8.8 million in 2010 with a margin of 6.7 per cent.
The company justified the decline in profitability margins by stating there had been an increase in the SG&A cost to accelerate top line growth and retain its customer base.
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