What now for The food sector? - 5 trading update takeaways
In addition to the immense tragic human cost of the COVID-19 pandemic the economic costs continue to mount. The IMF estimates that global GDP will contract by – 3% in 2020, much worse than the 2008/2009 financial crisis. Only last January 2020 global GDP was forecast to expand by + 3.3% in 2020.
The agribusiness and food industry has long been hailed for its defensive characteristics. The thesis runs, that irrespective of economic circumstances people must eat and drink, affording the sector a degree of protection during economic showdowns. In normal circumstances businesses in the food sector should have less to fear from economic turmoil. But these are not normal circumstances.
To understand how companies, anticipate the COVID-19 pandemic will play out and their expectations of the impacts on their businesses’ future prospects, our analysts surveyed recent trading updates and quarterly reports of some bellwether agri-food companies.
As a Managing Partner for Farrelly & Mitchell, Philip has consulted with countless food and beverage agribusinesses around the world. His expertise includes commercial and technical due diligence, business valuation, feasability modelling, and more.
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