Yeo Hiap Seng warns of FY2020 net loss owing to Covid-19 resurgence in Malaysia

Singapore

BEVERAGE player Yeo Hiap Seng (YHS) expects to post a net loss for FY2020 ended December, due to fallout from the Covid-19 pandemic in its key market Malaysia, the mainboard-listed company announced in a Friday bourse filing after the market close.

Besides the impact of the pandemic, the net loss is also expected to arise from the absence of one-off gains on asset disposals and fair value gains on financial assets, YHS said. The company had previously also warned of a net loss for H1 this year.

"The group started H2 on a cautiously optimistic note, as there were encouraging signs that the progressive lifting of lockdowns and restrictions in markets have improved consumer spending," it said in the filing.

However, renewed lockdowns in the fourth quarter due to subsequent waves of Covid-19 in certain countries have raised uncertainties. In particular, YHS' key market Malaysia has seen a spike in cases, resulting in state lockdowns and the closure of factories.

"Notwithstanding the foregoing, the group will continue to adapt and execute on commercial strategies across our markets, including prioritising resources on grocery and e-commerce channels for at-home consumption, launching new products and driving productivity," it said.

YHS added that it has a strong balance sheet that will help it navigate through the pandemic. The firm expects to announce its unaudited financial results for H2 and the full year on or before Feb 28, 2021.

Shares of YHS closed flat at S$0.78 on Friday.