The profits of the “Arafa Investment and Consulting” company decreased by 86.3% during the first nine months of this year, to reach $ 1.5 million, compared to net profits of $ 10.85 million during the same period of the last fiscal year 2019.
The company’s sales decreased during the first nine months of this year to reach $ 85.88 million by the end of June, compared to total revenues of $ 159.9 million during the same period last year.
The company attributed the decline in its sales to the continuation of the exceptional circumstances that the country and the whole world are going through since the outbreak of the Corona pandemic during the first quarter of 2020, and the consequent suspension of the group’s export activity for several months and the fact that many customers declared their bankruptcy and resorted to bankruptcy laws to protect them from creditors.
The combined sales were also affected by the decline in retail sales in Egypt and the United Kingdom, as a result of the complete closure of markets, the imposition of a curfew for several months and the decline in purchasing power, in addition to the outbreak of the second wave of the Corona pandemic last November, which led to the closure of markets and retail stores again.
The company indicated that the negative effects of the Corona pandemic have not ended yet, and it is expected that the positive fruits of the new vaccine will only come during the second quarter of 2021.
The company turned to a loss of $ 10.68 million during the first half of this year, compared to net profits of $ 7.76 million during the same period of the last fiscal year 2019, taking into account the rights of the minority shareholders.
The company’s revenues declined during the first six months of this year to reach $ 55.7 million by the end of June, compared to total revenues of $ 104.3 million during the same period last year.
The total profit of the activity during the same period decreased to $ 13.251 million, compared to $ 37.313 million in the same period, and the activity cost recorded $ 42.493 million during the period from February to last July, compared to $ 66.994 million in the comparative period.
Arafa Investments recorded losses from the industrial sector and the local retail sector during the first six months of the fiscal year 2020 amounting to $ 1.3 million, despite the company’s factories being suspended for a long time, in addition to the closure of many commercial malls and the reduction of working hours in stores following the imposition of a curfew due to the precautionary measures. Imposed by the country to confront the Corona virus.
Alaa Arafa, Chairman of the Board of Directors of Arafa Holding Company, said that the results of the first six months of the fiscal year 2020 were significantly affected by the losses of the English Bird Group during the period, due to the complete suspension of retail activity for several months due to the complete closure of the markets in accordance with the precautionary measures that were taken in the Kingdom. United to limit the spread of the Coronavirus.
The article Corona Pandemic Leads Arafa Investments’ profits to drop to 1.5 million dollars within 9 months, it was written in Al-Borsa newspaper.