NASSAU, BAHAMAS — Commonwealth Brewery has reported that the overall impact of COVID-19 resulted in a net loss of $3.4 million for the first nine months of the year.
In its unaudited financial statements for the nine months ended September 30, the BISX-listed brewer said the ongoing COVID-19 pandemic continues to have a substantial impact on the economy and the operations of its company’s operations.
“During the third quarter of 2020, the government of the Bahamas continued measures to curtail the spread of COVID-19 by instituting additional lockdowns, curfews, and limitations on social gatherings,” the brewery said.
“These factors contributed to a less than favorable third quarter for the Company given that commercial activities were limited due to the factors described and the strain on consumer’s disposable income.
“CBL’s management and staff will continue to navigate through the constantly changing circumstances with the goal of weathering the pandemic and return to profitability at the earliest possible time.”
The company further noted that its management has been able to achieve financial stability through early actions taken during the first quarter of the year by increasing short-term financing.
“This proved pivotal to CBL’s ability to navigate periods of lock-down during which revenue has severely reduced due to the halt of economic activity,” it continued.
“This short-term financing strategy has been sustainable through the third quarter with the Company not requiring further financing. Net revenue during the third quarter declined by 27.8 percent while operating expenses reduced by 19.8 percent compared to the third quarter of 2019.
“As a result, we experienced a total comprehensive loss of $766 thousand, compared to a positive result of $1.68 million during the corresponding period of 2019. The overall impact on CBL from the effects of COVID-19 has been a net loss of $3.4 million for the first nine months of 2020,” the brewery said.
The company said its focus will continue to be on cost reduction and increasing value to customers through its diverse product offerings.