Delta Sugar (SUGR) announced its financial indicators for the third quarter (Q3) of 2020, in which it recorded revenues of EGP 543.3m, reflecting a downturn of 41.5% quarter-on-quarter (q-o-q), but a rise of 15.4% year-on-year (y-o-y).
The company’s gross margin plummeted to -17.0% versus 23.3% and 2.6% in Q2 of 2020 and Q3 of 2019, respectively. It also recorded a net loss of EGP 114.4m during the quarter, compared to a profit of EGP 170.9m during Q2 of 2020, and losses of EGP 57.5m in Q3 of 2019.
Delta Sugar said that net loss was due in part to the conditions in the local and global sugar markets, mainly because of the drop in local sugar prices, which reached their lowest levels since the second half (H2) of 2019.
The market has also been affected by the weak demand for sugar in the local market, in addition to excess supply. This has, in turn, forced the company to sell its products at levels lower than the cost of production by around EGP 1,400/tonne.