Covid-19: OVS foresees sharp drop in 2020 turnover

The year to January 31, 2020, OVS S.p.A. said, ended with net sales of 1,370 million euros, decrease of 1.5 percent due to the strategy of reducing inflows of goods combined with lower promotional leverage. Adjusted EBITDA, the company said in a statement, which came in at 156.3 million euros, recovered by 31 million euros compared with the second half of 2018, up 49 percent year-on-year. Adjusted net profit was 57.7 million euros, up 2.6 million euros compared with 2018.

After the Covid-19 outbreak at the beginning of 2020, the company anticipates revenues will contract sharply in the current financial year. OVS added that in addition to the almost two months of disruption already experienced, it expects a significant decrease post-lockdown that will be more marked until the summer and hopefully less pronounced in the second half of the year. The company believes that ongoing cost containment measures, the support of the temporary lay-off fund, discounts from suppliers and lower costs for services and rents will be the main factors partially offsetting the loss of profits.

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