Imperial Logistics hit by lockdown
CAPE TOWN - Imperial Logistics said Tuesday about 45 percent of it’s South Africa division’s operations had been affected by the lockdown.
However, the group’s operations in over 32 countries, including in countries severely impacted by the virus, includes sourcing, warehousing, transport and distribution of medication and other medical supplies, food, basic goods and other essential products.
Imperial Holdings’ share price increased 3.33 percent to R22.04 Tuesday morning.
In South Africa, about 55 percent of revenue in this division was generated from the consumer, healthcare and other essential products and services sectors in the country, the group said in a trading update Tuesday.
In the group’s African Regions division, close to 100 percent of revenue in the division was generated from the healthcare and consumer industries.”While there are some concerns relating to the supply and the delivery of products in certain markets, most of the businesses in this division continue to
operate at this time, with sufficient stock on hand.”
In the international division, the automotive contract logistics and related transport business had been impacted by the plant shutdowns of the vehicle manufacturers.
Volumes in the chemicals and related shipping businesses were resilient - 31 percent of revenue in the division was from the chemicals industry - although volumes are being negatively impacted in some instances.
Imperial said it had adequate headroom in terms of debt covenants and liquidity. Stringent measures had been put in place to manage costs, optimise working capital and capital expenditure, with a stronger focus on cash flow generation during these uncertain times.
Previous guidance for the year to June 30 was withdrawn doe the increasing uncertainty and volatility that its markets were currently faced wit, and updated guidance would be provided once there was more certainty on the outlook.