Pepco warns: supply may be interrupted

By: Trademagazin Date: 2024. 01. 18. 12:13

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Global supply chains are faced with another challenge by the crisis in the Red Sea region, the consequences of which are already being felt in the case of the Hungarian Pepco group. In its warning issued on Thursday, the discount store chain pointed out that the instability of the region currently only affects the availability of its products to a limited extent, but in the longer term it could lead to serious problems with supply.

The events taking place in the Red Sea, various attacks and the military presence of the twenty are already worrying. Although Pepco previously reported that their transportation costs had decreased by the end of the third quarter, however, due to changes in the route, they now have to account for new costs.

The company’s quarterly results up to December 31 showed an overall decrease of 2.3 percent in terms of comparable revenues. Nevertheless, Pepco’s shares showed a 3.5 percent gain on Thursday morning on the Warsaw Stock Exchange. Uncertainty in supply chains and the impact of regional events may present additional challenges to the company and other global retail players.