May 15, 2020
Everything Fresh (EFRESH) for the three months ended March 31, 2020, reported total revenues of $489.23 million, an 18% decline from the $593.18 million reported for the same quarter period in 2019. Management noted, “The reduction in sales being primarily due to the effects of the Covid-19 Pandemic in March, as well as, the company’s decision to discontinue supplying special pork cuts. We are continuing the production of pork sausages and beef burgers.”
Cost of sales for the period decreased 17% to $426.60 million relative to the $514.52 million booked the corresponding period in 2019. As such, gross profit for the quarter amounted to $62.63 million, a 20% reduction from the $78.66 million reported in 2019.
The Company reported other operating income of $993,000 for the quarter, 443% more than the $183,000 reported for the corresponding period last year.
Total operating expenses decreased 11% for the three months, to total $66.65 million versus $75.01 million documented in the prior year’s comparable quarter in 2019. Of this, administrative expenses declined 11% to $66.50 million (2019: $74.79 million), while selling and promotional expenses closed at $151,000 (2019: $224,000). Management noted that, “this was due mainly to the scaling back of operations at the Meat Plant.”
As such, the Company booked an operating loss of $3.03 million, relative to a profit of $3.83 million recorded for the same quarter of 2019. Finance costs totalled $8.40 million (2019: $3.60 million).
EFRESH reported loss before tax of $11.43 million compared to profit before tax of $229,000 booked for 2019’s first quarter. No taxes were incurred for the quarter, resulting in a net loss of $11.43 million versus a net profit of $229,000 in March 2019.
Consequently, loss per share for the period amounted to $0.015 (2019: EPS $0.0003). The trailing twelve months Loss per share is $0.12. The total amount of shares outstanding used for this calculation was 780,000,000 units. Notably, EFRESH closed the trading period on May 14, 2020 at a price of $0.82.
EFRESH highlighted, “Our company is a significant supplier to the tourism sector. Our customers include most of the larger hotels in the industry. Traditionally March is the peak of the winter season. The Covid- 19 pandemic started to impact our sales in the middle of March 2020, as our hotel customers started to close their properties and scale back purchases to match their reduced occupancy.”
Furthermore. “The Company is currently ramping up sales in the retail sector and implementing stringent cost cutting measures to attain profitability despite closures in the tourism sector.”
Balance Sheet Highlights:
As at March 31, 2020, total assets amounted to $1.06 billion, 15% more than last year’s $927.55 million in 2019. This was due mainly to a rise in ‘Inventories’ which closed at $393.81 million (2019: $236.45 million).
Shareholder’s Equity decreased by 15% year over year to $528.34 million compared to the previous year’s total of $623.51 million, this resulted in a book value per share of approximately $0.68 relative to $0.80 in 2019.
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