For the three months ending September Hamilton Beach Brands Holding Company (NYSE: HBB), famed for their food processing equipment, saw the sales decline from $149.5 million to $110.5%, with a net loss of $2 million contrasting with a profit of $600,000 a year earlier.
Some of its concerns were blamed to the company ‘s shipping challenges in implementing the current resource planning framework (ERP).
At the company’s US fulfilment centre, the cutover to the new platform slightly decreased shipping capacities, compounding unanticipated restrictions in the transportation industry.
Hamilton Beach noted in a statement that while the project had created greater than predicted challenges for the company, all the shipping obstacles have now been addressed and it expects to benefit from the conversion to a more safe and effective process in coming periods.
The firm added that since adding warehouse staff and lift equipment, expanding shifts and growing capacity with temporary third-party facilities, it has strengthened its shipping capabilities.
With its biggest retail customers, it was also able to convert some of the order volume to direct imports in order to further ease the burden on its shipping capabilities.
Extraordinary demand surged in the US and Canada as home stuck customers during the pandemic indulged in more than normal preparation of food and drinks
In the meantime, business users in the foodservice and hospitality sectors are starting to order again as they adapt to the new environment generated by the global pandemic, HBB said.
This year, Hamilton Beach Brands has released product line of over 50 items and envisions that it will release about 100 new products over the next 24 months.
Given its current forecast, for the second half of 2020, the organisation needs overall sales to rise by about 20%.
To enhance growth Hamilton Beach Brands Holding Company (NYSE: HBB) is also considerations & acquisition opportunities or new strategic alliances.