As the fallout from the COVID-19 pandemic comes into clearer view, MWTS continues to face challenges in its operations.
For Healthy Family, bottle sales declined by 56 percent to 2.5 million bottles from 5.7 million bottles in the same period last year. Despite initiatives to push for cost efficiency, Healthy Family ended the year with a net loss of Php63 million.
On August 26, 2020, the Company announced the closure of its Healthy Family Business Division effective October 31, 2020 due to said division’s recurring losses and inability to financially sustain business operations. The dynamic competitiveness in the bottled water industry and recent economic challenges, despite notable efforts of management to improve operating efficiency and profitability, proved too difficult for the business to cope and keep operations viable.
For the Environmental Services segment, the slowdown in projects caused a significant drag on profitability, resulting to a net loss of Php16 million. This is likewise the case for the Pipelaying segment, wherein delays in the implementation of its remaining projects have driven down performance to a net loss of around Php11 million.
These developments led to MWTS posting a net loss of Php109 million for the year.