Massmart says it has sufficient funding to climate lockdown

Massmart mentioned on Monday it was assured it had enough funding in place to climate a 21-day nationwide lockdown however mentioned it was too quickly to estimate the monetary influence of the coronavirus outbreak.

The lockdown, which started final Thursday, restricts South Africans to their houses for many actions together with train, solely allowing them to exit to purchase meals or for well being emergencies.

“With the assist of our majority shareholder, Walmart, we have now concluded constructive discussions with our funders and are glad that we have now enough funding in place through the lockdown interval,” Massmart mentioned in an announcement.

Outcomes could also be affected

Nevertheless it mentioned the excessive degree of uncertainty and unpredictable outcomes of the illness “might materially influence the outcomes of the group negatively and the assumptions utilized in our evaluation of provisions and impairment”.

Its Makro, Wholesale Money & Carry shops, Protect Shopping for Group, Sport and Cambridge Meals shops would commerce in primary and important items through the lockdown interval, in step with the South African authorities measures, whereas its on-line platforms would additionally course of and fulfil primary and important orders.

The closure of South Africa’s borders has triggered some disruption within the provide chain to its shops in different nations, it mentioned, which account for round 10% of group gross sales.

It mentioned these shops have sufficient security inventory to have the ability to meet provide wants within the fast time period, after which they’d be depending on present native suppliers.