Arcus ASA: Operations update #2 after the COVID-19 outbreak
Stable operations in Arcus
Since the COVID-19 outbreak, Arcus’ business segments have managed to keep operations stable. Production volumes and overall flow of goods have been without disruptions. No employees have so far reported COVID-19 infection. At the moment 3,7 % of our employees are temporarily laid off.
Sales of wine to Vinmonopolet, especially Bag-in-Box, has been higher than normal as tax-free shopping and Swedish border trade have fallen close to zero. Details on the sales development will be provided at April 29, when the Q1 results are made public.
Supply of wine and other raw materials, has more or less been according to plan due to close cooperation with our partners. At our production and bottling facility, there have been no major disruptions. Logistics has had high activity due the increased demand at Vinmonopolet, and operation and deliveries have been very close to plan.
All temporary layoffs in Arcus are related to reduced sales to hotels, restaurants and bars. To minimize temporary layoffs, some of these employees have worked in our production, to fill vacant positions.
Our overdraft facility has been increased by 200 MNOK, but has not been used. The Board of Directors has postponed the dividend proposal and the annual general meeting, and will convene the Annual General Meeting 2020 separately later.
The Norwegian Competition Authority (Konkurransetilsynet) has approved the possible merger between Vectura and Cuveco. The merger project will then move on to the next stage of negotiations and planning.
Questions regarding this notice can be directed to Group Director Communications and IR, Per Bjørkum, telephone +47 922 55 777 or mail [email protected]