Dice Sport & Casual Wear has announced that its financial results for the first quarter (Q1) of 2020 were severely affected by the repercussions of the novel coronavirus (COVID-19) outbreak.
The company reported that net revenues stood at EGP 260.2m, down 40% quarter-on-quarter (q-o-q) and 23% year-on-year (y-o-y).
Dice’s gross processing margin (GPM) amounted to 15.9% during the quarter, down 5.7pps q-o-q and 5.2pps y-o-y.
It reported a net loss of EGP 42.2m, compared to a loss of EGP 5.4m in Q4 of 2019. The Q1 results for 2020, however, mark a profit of EGP 30.1m compared to the same quarter of the previous year.
The company’s weak performance during the quarter is likely to have been impacted by a substantial drop in exports starting in March. The main hit has been attributed to the lockdowns implemented across Europe.
According to industry sources, some factories in Egypt’s apparel sector have had to shut down production lines to cope with the drop in new orders.
On 11 March, Dice held a Board of Directors meeting to hire an independent financial advisor (IFA) to appraise a fair value for the company. The appraisal would then allow the company to undertake a capital increase. There have, however, been no fresh developments on this front,