Concrete Fashion Group’s (CFG) net income jumped to USD 9.8 mn during the first half of the year, up from last year’s USD 150k, the company said in its latest earnings release (pdf). The jump in income came alongside stronger operating profitability and a 15.4% y-o-y dip in financing costs.

This came despite a small dip in sales, with the company seeing its net sales fall 2.4% y-o-y to record USD 65.9 mn during the six-month period “largely due to an anticipated drop in manufacturing net sales.” Net sales from the group’s manufacturing segment were down 16.5% y-o-y thanks to continued Red Sea disruptions. Meanwhile, net sales from the group’s retail segment were up 10.1% y-o-y during 1H 2024 to record USD 13.1 mn, which it attributed to an increase in brand recognition, higher demand, and expanded store network.

Moving forward: “We remain confident in the [manufacturing] segment’s second-half performance, expecting a recovery in net sales driven by new clients like Ralph Lauren, rising demand from Turkey, and increased interest from Europe as economic conditions improve.” CEO Alaa Arafa said. “We will continue to expand our client portfolio by adding new brands and markets to our already rich roster.”

It has been an eventful year for CFG, which is the product of a demerger at Arafa Holding that took place earlier this year. The demerger produced CFC and GTEX Holding, both of which started trading on the EGX in March following the completion of the demerger.

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