Arafa for Investment and Consultancies (AIVC) reported a 56% year-on-year decline in consolidated profits for fiscal year 2018/2019 ended last January.
The company recorded a net profit of $3.08 million in the February-to-January period of FY18/19, versus $7.03 million in the year-ago period, according to a statement to the Egyptian Exchange (EGX) on Monday.
Revenues reached $236.5 million in FY18/19, versus $239.93 million in FY17/18, AIVC added.
The drop in annual profits was mainly driven by the losses incurred by the British group Bird which afforded the loss of customers after the giant retail group House of Fraser went bankrupt, AIVC said.
Moreover, the decrease in profits was impacted by operating cost and administrative and general expenses during the year following the Turkish crisis that affected the export business, in addition to the entry of new clients from the US, the company noted.
AIVC’s retail sales in the UK fell in FY18/19, particularly in the fourth quarter of the year when the retail chains have witnessed one of the worst winter and Christmas holiday season since 2008.
The company said that the UK market, where its customers largely depend on online shopping, is not stable after the Brexit.
As for the standalone business, the company generated a net profit of $6.36 million in FY18/19, versus $1.92 million a year earlier.
It is worth noting that AVIC had achieved consolidated profits of $3.26 million in the February-to-July period of FY17/18, versus $.2.4 million in the same period of FY16/17.