How COVID-19 has affected JSE listed companies

Covid-19’s impact on the country is massive. It has caused a national state of disaster and more than 60 days of a nationwide lockdown, unheard of in South Africa’s history.

Many companies listed on the JSE also haven’t escaped the brunt of the impact of the coronavirus.

Pepkor

Pepkor Holdings reported that the company had lost R5 billion in revenue in April as a result of level 5 lockdown implemented.

Pepkor has maintained strong trading momentum into July but said it is uncertain how long these levels of performance are possible as the impact of Covid-19 on the economy and employment unfolds.

City Lodge

City Lodge Hotels has warned that it will report losses for the year to end June as the Covid-19 pandemic hit its earnings, particularly in the last three months of the reporting period.

Its basic earnings per share (Eps) was forecast to fall by between 333 percent and 339 percent to a loss of between 1 310.8c and 1 344.5c compared to last year’s basic Eps of 562c with its basic headline earnings per share (Heps) to decline by between 166 percent and 172 percent, to a loss of between 369.6c and 403.3c compared to basic Heps of 561.7c reported last year.

Lewis Group

The Lewis Group, a retailer of household furniture and electrical appliances, took a hit in the last quarter of its financial year, with March merchandise sales declining by 24.8percent.

The group said in a trading update for the year to the end of March that the start of the lockdown on March 27 significantly impacted on its sales.

“Management estimates that the group lost merchandise sales of about R80million and customer account payments of R180m by being restricted from trading in the March month-end period,” the group said.

Liberty Holdings

Liberty Holdings swung into a loss of R2.17 billion in the six months to end June after the financial services group set aside a R3bn pandemic reserve fund to deal with the Covid-19 outbreak in its operations.

The group also reported normalised headline loss of 802.5 cents a share compared to last year’s normalised headline earnings a share of 735.8c while basic loss a share came in at 902.4c compared to last year’s basic earnings a share of 699.9c.

The group did not declare an interim dividend in the light of the outbreak.

The following companies saw revenues increase despite the nationwide lockdown and restrictions by government as a result of the Covid-19 pandemic:

PPC

Pretoria Portland Cement’s growth in cement sales arose in June, ironically, from the Covid-19 pandemic, as less imported cement entered the country. June 2020, as the cement sales volumes in South Africa grew by double digits, compared to June 2019. \

This was mostly due to the absence of imports that had given an opportunity for local producers like PPC South Africa to grow.

Exxaro Resources

The South African diversified mining company has reported group revenue of R14.1 billion during the six months to June on strong export volumes and the weaker rand.

Exxaro said that group revenue was up 18 percent from R11.9bn a year earlier mainly due to a 15 percent increase in coal revenue and the consolidation of energy revenue relating to Cennergi from April 1.

AngloGold Ashanti

The world’s third-biggest gold producer,AngloGold Ashanti was in solid shape after generating $177million (R3.12billion) in free cash flow during the six months to the end of June compared with an outflow of $31m for the same period last year as it rode the wave of the higher gold price

Gold Fields

Mining company Gold Fields said its headline earnings per share for the first half of 2020 would soar by up to 310 percent from the five US cents reported in 2019.

In a trading statement, Gold Fields, which is due to release its first half financial results on August 20, said the increase in earnings for the period was driven largely by higher gold prices.

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