Transport group Imperial Logistics says it expects earnings to have dropped by as much as 91% in the year to end-June, largely due to losses incurred by its consumer packaged goods business and the effect of Covid-19 across its operations in the second half of the period.
Gryphon Asset Management portfolio manager Casparus Treurnicht said: “This was a bigger-than-expected earnings shock and I can only think that activity stalling in retail, mining and industrial played a big role.” “Imperial is so closely tied to the economic performance of the regions that they operate in that they were hardly going to escape the consequences of the pandemic,” Treurnicht said.
Adding that this has also been supported by the proceeds of R3.4bn from the sale of the European shipping business. The group sold the shipping business in July as it plans to focus on growing its business in Africa.
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