- Australian beer company Broo (BEE) has described the state of its operations in the midst of the coronavirus pandemic
- The company has experienced a drop in trading activity over the March quarter, as a result of COVID-19 related restrictions
- Despite this, Broo is continuing its operations on a scaled-down basis, with some of its properties temporarily closed
- The company has implemented measures to mitigate the worst impacts but is forecasting less cash flow for June’s quarter
- Broo shares remain steady, trading for 1.4 cents per share at market close.
Australian beer company Broo (BEE) has described the state of its operations in the midst of the coronavirus pandemic.
Many companies are currently reporting disappointing first 2020 quarters as COVID-19’s impacts take full effect. Broo’s quarterly market update has demonstrated how the company, like many others, is attempting to weather the crisis.
Broo reported a drop in trading activity during the March quarter, due to the virus and related government restrictions. The company’s hospitality-focused businesses, Sorrento Brewhouse and Mildura Pub, have temporarily closed. As a result, Broo is working to reduce the costs of these businesses while the restrictions are in place.
Fortunately, the company’s Mildura Brewery is continuing to produce beer under its existing sales arrangements, despite the situation. Broo is focused on increasing the domestic sales and distribution of the Brewery’s product during this time.
Until the COVID-19 restrictions begin to relax in the coming months, Broo will continue to operate on a scaled-down basis. The company will attempt to continue meeting business objectives where possible, although survival has taken precedence for many enterprises.
Broo has implemented a variety of measures to mitigate the impacts of COVID-19 and the government’s restrictions. As expected, the company has reduced employee numbers at its hospitality properties and applied for the Job Keeper assistance allowance.
Broo has reduced other overhead costs where possible, and is reviewing assets that may be superfluous to beer production and sales.
With its corporate advisor, the company is working to secure an increase in short term standby working capital facilities. Broo is also assessing longer-term sources of capital, as the company tries to meet costs in the next quarter.
Despite these measures, the company has forecast a lesser level of trading cash flower for the quarter ending June 30, 2020.
Broo shares remain steady, trading for 1.4 cents per share at market close.