Revenues fell much deeper at 22 percent to P1.11 billion from the previous year’s P1.43 billion after it halted its operations for two months starting on March 17 through May 17 to abide by the government’s lockdown measures to curb the spread of Covid-19.
The company, which manufactures premium PVC compounds for wires and cables under the Crown brand, said it saw a decline in both its domestic and export sales as a result of the lockdown.
When the lockdown was eased through the declaration of general community quarantine, there were still some restrictive guidelines, it said.
“There was slow resumption of customer orders under uncertain business climate.”
The company said there was a “decline in certain operating expenses incurred including salaries and wages and utilities due to the temporary cessation of operations.” But this was offset by additional operating expenses incurred to ensure the health and safety of its employees and customers, such as the frequent disinfection of facilities, giving of protective equipment such as face masks, face shields and alcohol, shuttle services and free lodging for employees residing outside Metro Manila.
The company also had a recognition of impairment loss on trade receivables amounting to P2.2 million. “Based on the above actions and measures taken by management to mitigate the adverse effect of the pandemic, it projects that the company would continue to report positive results of operations and would remain liquid to meet current obligation as it falls due. Accordingly, management has not determined material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern,” Crown said in its report.
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