Peru’s Aceros Arequipa turns to loss in Q2 following Covid-19

Peru’s Aceros Arequipa turns to loss in Q2 following Covid-19

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Aceros Arequipa, one of Peru’s largest steelmakers, posted a net loss of PEN 38 million ($10.7 million) in Q2 this year, reversing a net profit of PEN 40 million ($11.3 million) in the same quarter of 2019.

The company said net revenues in Q2 declined 69.6 percent, year-on-year, and 62.5 percent, quarter-on-quarter, to PEN 208 million ($59 million), due to Covid-19. Peru remained on a lockdown from March 16 to the end of June, with a few sectors gradually resuming activities by mid-May.

Aceros Arequipa reported a gross loss of PEN 10 million ($2.8 million) in Q2 this year, down from a gross profit of PEN 96.1 million ($27.2 million) in Q2 2019. The company’s gross margin in Q2 plummeted to minus 4.9 percent, from 14 percent in Q2 2019.

Aceros Arequipa posted an EBITDA loss of PEN 13 million ($3.6 million) in Q2 this year, the company said.

USD = PEN 3.52 (July 27)

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