COMMENTARY

OUTLOOK

The pace at which we move through the various Lockdown phases to fully re‑opening the economy remains uncertain, whilst the impact on consumers, unemployment and disposable incomes is likely to be dire. We anticipate that demand patterns will change and are preparing for significant changes in consumption and shopping behaviour as we move out of the acute phase of the National Disaster period and into, what is likely to be, a deep and prolonged recession.

As existing procurement positions are depleted, the second half will be impacted by significant cost push due to rand weakness, global supply chain disruptions and additional costs incurred during the Lockdown period. These costs, together with the effect of Government regulations on pricing during the National Disaster period, may have an impact in excess of R500 million on profitability.

Our immediate focus is to ensure the ongoing safety of our employees whose commitment during this period has been truly inspirational. We are prioritising the building of adequate stock cover to cater for the possibility of potential disruptions to the supply chain and ensure the consistent availability of our products.

In the short to medium term, cognisant of a constrained consumer, we will prioritise innovation towards value offerings, whilst re‑engineering our business to optimise costs and improve efficiencies.

By order of the Board

Bryanston

22 May 2020

Date of release: 25 May 2020