By
The firm, which specializes in menswear and exports 75 percent of its goods, mainly to Europe, said revenue had been reduced after it divested two of its units, SRG & Melka, during 2010.
Net profit rose to $17.1 million from $10.2 million a year earlier, while revenue dropped 14.8 percent to $283.3 million.
Arafa said its board is proposing a cash dividend of 2 cents per share and a bonus share issue of one new share for each five shares held that would raise its issued capital by $10.45 million.
The company's share price jumped 5 percent on Monday to $0.63 each, while the benchmark index gained 1 percent.