Aussie supplier expects shift in demand between channels.

 

Asaleo Care, manufacturer of global workplace hygiene brand Tork, said the current COVID-19 crisis will have a “positive and negative” impact on its financial performance in 2020.

 

Addressing the Victoria-based company’s annual general meeting earlier this month CEO Sid Takla said the current economic environment surrounding the pandemic will have “both a positive and negative impact on our business” but it expects the net position to be in line with previous guidance. 

 

“We have seen a spike in demand across all our categories and segments, with the well-publicised panic buying in March. However, we do not see a reason as to why consumer use of our products will increase and therefore anticipate most of these incremental sales to be offset with softer demand in future months,” he said.

 

“There will be a shift in demand between channels with the lockdown measures having an impact on away-from-home versus in-home activities. This will conversely impact our B2B and retail tissue segments,” Takla added.

 

Asaleo’s B2B business saw total revenue grow 1.6 per cent to $221.6 million. 

 

The Tork Professional Hygiene business achieved one per cent revenue growth for the full year after a slow start, but finished the year strongly up 3.2 per cent in the second half. 

 

The company’s proprietary ‘hero’ systems continue to grow and now represent more than 36 per cent of all professional hygiene sales. 

 

“The pipeline for professional hygiene is strong and we expect this to underpin future growth, however we will experience some delays in new dispenser installations as a result of the COVID-19 lockdowns,” Takla said.