March 2, 2021
Everything Fresh Limited (EFRESH) for the year ended December 31, 2020 revenue contracted by 52% for the period amounting to $1.05 billion, down from $2.20 billion reported a year ago. For the fourth quarter, revenues totaled $167.65 million, a 70% decrease when compared to last period’s $563.05 million. The company noted, “In 2019, 85% of total sales were derived from the hotel industry. By the end of 2020 hotels accounted for 46% of total sales. Even though overall sales declined from $2.2 billion in 2019 to $1.0 billion in 2020 the company was able to grow sales from non-hotel sources, such as supermarkets.”
Cost of sales closed the period at $905.94 million (2019: $1.90 billion) which translated into a gross profit of $142.82 million (2019: $299.49 million). For the fourth quarter, gross profit fell 54% to $43.87 million relative to $94.45 million in 2019.
Other operating income rose by 87% for the period to $3.08 million from $1.64 million reported the prior year. While, for the quarter, other operating income closed at $24,000 (2019: $84,000).
Operating expenses totaled $293.50 million, 23% less than the $381.74 million booked the previous year. Of this, administrative expenses fell to $227 million (2019: $340.48 million), while selling and promotion expenses closed at $16.50 million (2019: $41.26 million).
Operating loss amounted to $147.60 million versus operating loss of $80.61 million documented in the same period last year. For the quarter, operating loss of $49.44 million was booked compared to operating loss of $55.82 million documented in the prior comparable period. In addition, finance costs amounted to $30.17 million (2019: $23.06 million).
Loss before tax for the year ended December 31, 2020 totaled $177.78 million in comparison to 2019’s loss before tax of $103.67 million. For the quarter, loss before tax amounted to $55.31 million (2019: $63.05 million).
Tax expense of $3.36 million was reported for year-end relative to tax credit of $20.15 million reported the previous year. As such, net loss of $181.14 million was booked for the period relative to net loss of $83.52 million for the corresponding period in 2019. For the quarter, net loss closed at $58.67 million (2019: $42.90 million).
Consequently, loss per share (LPS) amounted to $0.23 (2019: LPS $0.11) while loss per share for the quarter amounted to $0.08 versus a LPS of $0.06 in 2019. The number of shares used in this calculation was 780,000,000 shares. EFRESH stock price closed the trading period at a price of $1.22 on March 1, 2021.
The company stated,“ It is expected that the tourism industry will recover in time for the start of the winter season. In 2021 the company will continue to increase sales from the non-hotel sector through improved merchandising and inventory management. New lines of products will be introduced. There will also be further reductions in expenses. This will allow the company to remain viable and eliminate reliance on the hotel industry.”
Balance Sheet at a glance:
Total Assets fell by 23% or $221.67 million to close at $754.40 million as at December 31, 2020 (2019: $976.07 million). This was largely due to the $119.49 million decrease in ‘Trade Receivables’ which closed at $163.77 million (2019: $283.26 million). Additionally, ‘Cash and Cash Equivalent’ fell 68% to close at $27.47 million (2019: $85.97 million).
Shareholder’s equity totaled $358.62 million compared to the $539.77 million reported the prior year. This resulted in a book value of $0.46 (2019: $0.69).
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