Astra says no significant impact of COVID-19 measures on its business so far

Astra Industrial Group (Astra) said that the government’s precautionary measures to contain COVID-19 pandemic outbreak have not significantly impacted the group's business and its financial results.

The company said in a bourse filing on Wednesday that it is difficult to determine the financial impact, and added that the effects of precautionary measures in Saudi Arabia and in the other countries in which the group operates, are as following:

- The Group follows the safety procedures recommended by the World Health Organization (WHO) and the health authorities in the Kingdom and other countries in which it operates.

- Reducing number of staff and working hours, as well as activating remote work in several countries in line with the regulations.

- Closing retail stores and limiting the work in several countries may affect the consumption of some products later on, however the group has not faced a significant impact of these measures so far.

- Challenges of securing production inputs to its plants as well as its products in different markets. This is due to the precautionary measures taken by the Kingdom and other countries by limiting exports in order to secure local markets’ needs.

The statement further noted that the group works closely with the relevant authorities in the Kingdom to reach a suitable mechanism for re-exporting pharmaceutical products after ensuring its availability in the Kingdom.

- Change in the customers’ attitude to fulfill their commitment. The group expected that the prolonged decline in economic activities across the Kingdom and other countries could have a negative impact on the customers’ attitude to fulfill their commitment.

- Difficulty in maintaining high levels of production. Since the majority of the group’s business is in vital segments it requires continuous working by employees, which may result in work-related injuries.

However, the group seeks to apply the highest safety standards, as per the WHO and local regulatory bodies, on dealing with these injuries.

The statement said that the group is not expected to be significantly affected by these measures, and added that it will continue efforts to improve its business operations related to risks of work-related injuries.

- Cooperation and coordination with the government to identify the support mechanism and feasibility.