Hudaco released its unaudited results for the six months ended 31 May 2020 on the 25th of June 2020. The group reported sales of R2.6 billion for 1H2020, down 17%. As a result of the lockdown restrictions brought on by the Covid-19 pandemic, Hudaco lost five weeks of trading time, representing 19% of the available time for 1H2020. The lost trading time, coupled with fixed costs, resulted in operating profit declining by 73.5% to R79 million, with an operating margin of 3%.
In terms of the company’s outlook, management guided that it is difficult to accurately predict what second half trading will be like under Covid-19. With the easing of lockdown restrictions, Hudaco is encouraged by the increase in trading post the first half of the year.
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