July 28, 2021
Everything Fresh Limited (EFRESH) Chairman, Gregory Pullen, highlighted the financial performance for FY2020. Revenue contracted by 52% for the period amounting to $1.05 billion, down from $2.20 billion reported in 2019. The Hotel & Restaurant accounted for 90% of the company’s total revenue in 2019, however, this dropped to 64% in 2020. The company made a strategic decision to ramp up sales in the Retail & Wholesale revenue category. Sales from this category grew from $221.57 million in 2019 to $377.75 million in 2020. Cost of sales closed the period at $905.94 million relative to the $1.90 billion in 2019, as such gross profit ended at $142.82 million relative to $299.49 million in 2019.
“The net loss analysis revealed that the distribution division recorded a small profit in the previous year whereas the Meat Plant division resulted for most of the loss. However, as a result of the pandemic, in 2020 the 70% of the loss came from the distribution division while 30% came from the meat Plant division. The company’s Total Assets fell by 23% mainly attributable to Trade Receivables contracting. While Total Liabilities fell by 9% as a result of a reduction in trade and other payables.”
Looking forward, the company plans to continue the growth of the retail & wholesale sale category to strengthen diversity. “EFRESH began introducing new products in the last quarter of 2020. The company will continue to place emphasis on traditional import and distribution, as such the meat plants have been downsized.” According to management, “tourism is rebounding, and this will benefit the company, EFRESH will continue to focus on new marketing efforts, further diversifying revenue and managing working capital better by keeping lower inventory and receivables.”
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.