COVID-19 slashed first half revenue at NZX-listed Wellington Drive Technologies, a provider of internet of things (IoT) solutions and energy efficient motors to the retail food and beverage industry.
The company reported today that for the six months ended 30 June, revenue fell 38.5 per cent to $20.5 million, down from $33.3 million in the same period of 2109.
The result includes a $1.1 million reduction in operating expenses as result of cost reduction measures implemented to mitigate the impact of COVID-19.
EBITDA fell from $2.45 million to $1.14 million and the company reported an overall loss for the half of $0.79 million, down from a profit of $0.72 million in 2019.
The company said COVID-19 related supply chain constraints in the first quarter and the weakening of customer demand in the second quarter due to customer factory closures, food and beverage brand equipment spend reductions and government mandated regional restrictions all contributed to the declines.
The company said it reacted quickly to mitigate the impacts, with a range of cost reduction and cash initiatives and a capital raising to maintain core operational capabilities and the new product pipeline.
“We are managing through an unprecedented disruption in demand, directly as a result of the global COVID-19 pandemic," CEO Greg Allen said.
The recent introduction of a new monitor retrofit device for commercial cooler and ambient applications, that provided connectivity and data solutions for installed equipment, was one example of how the company was maintaining core capability and continuing to innovate despite the uncertainty created by the pandemic, Allen said.
Disclosure: Rob O'Neill owns a small number of Wellington Drive shares.