WPP AUNZ is forecasting earnings between breakeven and a $10 million loss for the first half of 2020.
The company told its AGM that net sales were down 6% over the first quarter with early impact of COVID-19 hitting in March. In March net sales were down 10.8% on the previous year.
Net sales fell 22% in April.
"We do expect a significant negative impact on our earnings in the second quarter," CEO Jens Monsees told shareholders.
"There remains much uncertainty surrounding this forecast given the volatile operating environment.
"And there are too many uncertainties to provide a full year outlook at this point in time. We are focussed on what we can control, which are costs, and we expect to see the benefit of our initiatives in this area coming through in the second half."
The company has implemented a $70 million operating cost reduction program, much of its salary cuts.
"Our future in the new norm is as a critical partner to our clients in this ever changing, more digital world," says Monsees.
"We’re at the forefront of change. Consumer behaviours are turbo charging tech and data driven advertising. And we are confident we have the capability to help our clients navigate the new normal post COVID-19."
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