PRIM’s net profit reached €3.7 million in the first half of the year, following the impact of Covid-19
The Prim Group closed the first half of 2020 with a net profit of €3.7 million and an EBITDA of over €7.1 million, resulting in downturns of 31.7% and 30.1%, respectively.
Every item on the income statement was affected by the pandemic as since the declaration of the State of Alarm, the country’s health activity has poured all its resources into caring for COVID-19 patients, which meant the suspension of any other non-critical activities.
Consequently, the Prim Group’s sales, which had performed very well during the first quarter of the year (+9.46%), fell by 10.30% in the first half of the year. However, thanks to the lifting the State of Alarm, the Group’s commercial activity recovered to close the month of June with revenue levels equal to the those for the same month in 2019.
The same applies to the EBITDA, which started the year with significant increases only to fall to its lowest point in April before slowly beginning to recover in May and June. Operating profit closed at €4.4 million (-44.49%) for the first half of the year, but this was also influenced by an increase in expenses from the new distribution contracts acquired by the Group, which should provide for future growth.
In the Management Report for the first half of the year, approved today by the Board of Directors, the hospital supply company has set out the measures it has implemented to combat the negative effects of COVID-19 and to protect its stakeholders, employees, customers, suppliers, subcontractors and society as a whole.
These measures include the strengthening of its cash reserves, the offering of financial support to private customers and suppliers for the continuity of their services, job preservation and participation in the corporate solidarity chain implemented in Spain which has included the donation of equipment and the provision of installations and qualified technical and human resources to hospitals. These actions have not had a negative impact on the Group’s financial situation, nor have they damaged its intangible assets in any way.
In other news, in compliance with the agreements adopted at its meeting on 7 May, regarding the Succession Plan of the Group’s leadership, the Board of Directors has approved the appointment of Lucía Comenge and Jorge Prim, respectively, as Chair and Vice-Chair of the Prim Board of Directors. These appointments will become effective on 7 August and will be the driving force behind an important generational change that aims to undertake a new phase of growth and redevelopment. This will help to place the Company at the forefront of best practices and will consolidate the organisation’s previous achievements. It will bring to an end an exemplary transitional period, which has served to guarantee the continuity of management and business and provide transparency to the process.
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