Dubai – Mubasher: Emirates Refreshments Company has achieved accumulated losses of AED 7.57 million as of 30 June 2020, representing 25.24% of the company's capital.
Over the past two years, AED 18.05 million losses were accumulated due to lower volumes and net selling prices, according to the company's disclosure to the Dubai Financial Market (DFM) on Monday.
Meanwhile, the coronavirus (COVID-19) economic impact has decreased the company's sales by 51% during the second quarter (Q2) of 2020, when compared to the same period of 2019.
To tackle the accumulated losses, the company has taken cost saving initiatives in the fourth quarter (Q4) of 2019 to eliminate the fixed cost components, rationalise the distribution routes and fleets, and close one of the manufacturing facilities.
These initiatives have reduced the net losses by 80% in the first quarter (Q1) of 2020 when compared to the year-ago period.
It is noteworthy to mention that by the end of March 2020, the company incurred accumulated losses amounted to AED 16.304 million, representing 54.35% of its capital.