Yeo Hiap Seng warns of H1 2020 net loss due to Covid-19 and lower consumer spending

BEVERAGE company Yeo Hiap Seng on Thursday said it expects to report a net loss in the first half of 2020, a significant decline from a year ago, due to the impact of the Covid-19 pandemic and lower consumer spending.

The net loss will be aggravated by the absence of one-off gains on asset disposals and fair-value gains on financial assets which were recorded in the same period last year, it said.

"The Covid-19 pandemic has and is expected to continue to adversely impact the group's revenue and profit due to softness in consumer spending, disruptions to operations and sales channels as well as higher operating costs," it said.

The company said that it will continue to focus on adapting and executing commercial strategies, rolling out new products, strengthening supply-chain resilience and driving productivity.

It added that it is in a "robust financial position" to navigate through this crisis, although the pandemic will likely continue to cause significant market and business uncertainty in the near term.

The company will announce its H1 2020 unaudited financial results by Aug 15, 2020.

The stock ended 1.5 Singapore cent or 1.8 per cent higher at S$0.855 before its profit-warning announcement.