Share
Remgro sees decline in headline earnings on COVID-19 impact
Remgro has just released its full year results. In the company’s trading statement 2 weeks ago, headline earnings were projected to drop between 65 per cent and 75 per cent. This is with the negative impact caused by COVID-19 and lockdown measures. Remgro CEO, Jannie Durand joins CNBC Africa for more.
Mon, 28 Sep 2020 15:53:43 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Remgro reports decline in headline earnings due to COVID-19 impact and lockdown measures.
- Diverse portfolio faces challenges in sectors such as liquor, food, and medical during the pandemic.
- Company prioritizes supporting underlying businesses, considering acquisition opportunities, and share buybacks to address market disconnect.
South African investment holding company Remgro has recently reported a decline in headline earnings, reflecting the impact of the COVID-19 pandemic and resulting lockdown measures. The company's CEO, Jannie Durand, discussed the challenges faced during the past year and provided insights into the current outlook and future plans. Remgro's diverse portfolio, which includes businesses in industries such as liquor, food, and medical, has encountered various difficulties due to the pandemic. Durand highlighted the significant loss in sales experienced during the lockdown period, particularly in sectors like quick service restaurants and liquor sales. The company's investments in the medical sector also faced challenges, with hospitals under pressure and staff working in difficult circumstances. Despite these hurdles, Remgro has prioritized supporting its underlying companies and maintaining a strong balance sheet. Durand emphasized the importance of providing financial support to struggling businesses and indicated that the company may explore acquisition opportunities in the current market conditions. Additionally, Remgro has considered share buybacks to address the disconnect between its share price and underlying assets. The decision to pay a dividend amidst economic uncertainty has been well-received by shareholders, reflecting their confidence in the company's resilience and long-term outlook.
SIGN UP FOR OUR NEWSLETTER
DAILY UPDATE
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.
