Lecico – Egypt anticipates further closures of part or all of its commercial activities in most of its main markets, with the closures likely to continue for months to come.
In a disclosure to the Egyptian Exchange (EGX) on Thursday, the company said that its performance during the first quarter (Q1) of 2020 witnessed major disturbances. The company attributed these to the negative economic and market repercussions of the ongoing coronavirus (COVID-19) pandemic.
Lecico Egypt added that its main Middle East markets, including Libya, Jordan, and Lebanon, are in shutdown due to a lack of sales since mid-March. The company noted that the European demand for its products has decreased by between 20% to 50%.
Moreover, Lecico Egypt is working to lower production and extend the shutdown at some of its factories to lower energy consumption, cut costs, and defer payments to curb expenditures.
Two of the company’s Egypt factories were recently closed after positive coronavirus cases were detected, with one factory having since reopened.
The company emphasised it will overcome the current turmoil even if it extends to 2021. It will, however, incur additional debts to finance fixed costs and will not benefit from savings resulted from lower production.