Trellidor’s profits plummet after Covid-19 shutters facilities
Fixed-security specialist Trellidor has seen a two-thirds decline in full-year profit after the Covid-19 pandemic disrupted manufacturing and hit the disposable income of South African consumers.
Revenue fell 18.1% to R422m in the group’s year to end-June, while headline earnings declined 67% to R14.18m, as the pandemic dealt a further blow to SA’s already recessionary economy.
The national lockdown, which came into effect in March resulted in manufacturing facilities being closed for the entire month of April and therefore close to zero sales for the group, Trellidor said.
Manufacturing resumed from early May when the country was moved to lockdown level 4, however this was at reduced capacity to comply with social-distancing regulations, the statement read.
Trellidor said on Tuesday its sales performance from July to August exceeded expectations, but with weak economic conditions expected to continue in the medium term, the group would be focused on cost containment.
In morning trade Trellidor’s share was up 2.37% to R1.73, having just more than halved so far in 2020. The group had a market capitalisation of R173m. — BDLive
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