Sony Australia suffers loss and warns of COVID-19 uncertainty for coming year

Having experienced gross revenue declines in months for the coming year already.
Written by Campbell Kwan, Contributor

Sony Australia has fallen into the red for the full year ended March 31, suffering an after-tax loss of AU$367,000, and warned of ongoing operational uncertainties for the coming year due to COVID-19. 

It said it has experienced year-on-year gross revenue declines in the months since 31 March 2020 driven by the impact of COVID-19.

"The COVID-19 pandemic has resulted in an adverse impact and increased pressure on the company's operating results, cash flows, and financial position as a result of government restrictions in movement of individuals and an overall decrease in consumer sentiments."

Despite uncertainty for the next 12 months, Sony Australia said COVID-19 did not impact its earnings for the full year ended March 2020, nor the supply chain of its key products and services.

For the year, the company's revenue increased by almost 6% year-on-year to AU$564 million. This comprised of around AU$555 million in sales of goods and AU$8.5 million in services.

The revenue uptick was offset by higher year-on-year expenses and taxes, however, with expenses rising by 7% to AU$462 million and taxes jumping to AU$12.2 million, culminating in the AU$367,000 after-tax loss. 

In the year prior, Sony Australia received a AU$2.6 million tax benefit and earned an after-tax profit of AU$28.4 million

Meanwhile, receipts from customers totalled AU$626 million, a 5% jump, and payments to suppliers and employees were cut by AU$66 million to AU$593 million.

As of 31 March 2020, Sony Australia has more than tripled its cash holdings to AU$20.6 million. It also has AU$27 million in net current assets with no external borrowings. 

At a time when Sony Australia has warned of uncertainty from COVID-19, its Japanese holding company Sony reported operating revenue increased slightly to ¥1.97 trillion for its most recent quarter when compared to the prior year.

The increase in operating revenue for the April-June quarter was primarily due to demand for gaming rising during the coronavirus pandemic, which saw gaming sales jump by almost 33% to ¥606 billion along with profit of ¥124 billion. 

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