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 .