JSE-listed Imperial Logistics has withdrawn its distribution guidance for the financial year ending June 30, as a result of the increasing uncertainty and volatility globally owing to the Covid-19 pandemic.

The company operates across 32 countries, each with respective mitigation measures and restrictions imposed; however, Imperial remains essential to the sourcing, warehousing, transportation and distribution of medication and other medical supplies, food and other basic goods.

In South Africa, Imperial continues to distribute consumer goods and medication, therefore, a significant part of the business remains operational during the lockdown period that is due to end on April 16.

About 55% of the company’s revenue in South Africa is generated from the consumer, healthcare and other essential products and services sectors.

Meanwhile, Imperial’s African business is mainly engaged in healthcare and consumer goods distribution. The company explains that while there are some concerns relating to the supply and delivery of products in certain of those markets, most businesses within the African division continue to operate at this time, with sufficient stock on hand.

Nearly 100% of Imperial’s African revenue is generated from the healthcare and consumer industries.

In the company’s international division, the automotive contract logistics and related transport businesses are most impacted, owing to original-equipment manufacturers shutting down plants.

About 36% of the international division’s revenue comes from the automotive industry.

Imperial further advises that 31% of revenue in the international division is generated from the chemical industry, which is still operational; however, volumes are negatively impacted in some instances.

The company confirms that it has adequate headroom in terms of debt covenants and liquidity to manage the Covid-19 impacts effectively. The company is also implementing stringent cost containment measures.