Dubai – Mubasher: Emirates Refreshments has logged accumulated losses of AED 11.357 million, representing 37.86% of the company's capital.
In 2018 and 2019, AED 18.05 million losses were accumulated due to a year-on-year (YoY) decrease in volumes and net selling prices, according to the company's disclosure to the Dubai Financial Market (DFM) on Sunday.
Meanwhile, the company has been affected by the economic disruption caused by the coronavirus (COVID-19) pandemic, which resulted in 46% lower sales in 2020, when compared to 2019.
To tackle the accumulated losses, the company launched cost-saving initiatives in the last quarter of 2019, including the optimisation and elimination of the fixed cost components and the shutdown of a manufacturing facility.
It is noteworthy to mention that in 2020, the company's net losses decreased to AED 7.182 million, compared to AED 10.11 million in 2019.