Long4Life warns of profit drop amid Covid-19 uncertainty
The group says sales have improved but the pandemic has weighed heavily, including on beauty chain Sorbet and Sportsmans Warehouse
Long4Life, Brian Joffe’s investment group, said on Wednesday that sales had picked up due to easing Covid-19 restrictions in SA, but that it is unlikely to make a trading profit in its half-year to end-August.
The ban on alcohol sales and the continued lockdown for restaurants, hotels and gatherings is weighing on its beverages division, which includes Chill Beverages, the group said in a trading update ahead of its AGM.
Sales have picked up at Sportsmans Warehouse, although schools sports gear remains under pressure, while beauty chain Sorbet has opened its doors in the past week and trading is “promising”.
“Given the negative trading experienced to date and the current continued uncertainties, it is not possible to provide any meaningful guidance on the group results to August 31 2020,” the group said, adding it is unlikely to make a trading profit for the period.
In morning trade on Wednesday, Long4Life’s share had risen 0.32% to R3.11, having fallen 22.83% so far in 2020.