COVID-19 has the world completely taken aback and the economies spinning. The impact of coronavirus on businesses has been even worse. However, for some companies, this period has opened a window of opportunities. Here, we will have a look at the top 5 companies growing during COVID-19.
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To survive this uncertain situation, businesses are taking every step possible to fight, and marketing has become an essential part of businesses during the pandemic. Most of these companies include technology-backed, healthcare, and retail businesses that are getting tailwinds that are helping.
Here we present a list of top 5 businesses that successfully pulled the plug and saw a growth in their profit margins during coronavirus:
1. Sanofi India
Sanofi is a French multinational pharmaceutical company. On 28th July, Sanofi India reported a net profit of Rs 136.3 crore for the June quarter as against a net profit of Rs 97.4 crore for the corresponding period of the previous fiscal.
It is also reported that the shares of the company gained 5% and hit a good 52-week high of Rs 8,835 apiece on the BSE on 30th July. The stock was trading at Rs 8,824.5 per share, up 4.8 percent, on the BSE as against a 0.77 percent rise in the benchmark S&P BSE Sensex.
For August, the stock has rallied 8.2 percent on the BSE, as against a 1.6 percent rise in the Sensex, BSE data show.
When talking about companies growing during COVID-19, the eCommerce giant Amazon saw growth in multiple departments. On 30th July, Amazon posted the biggest profit it had seen in its 26-year old business – all thanks to the pandemic! The world’s largest online retailer saw an increase in shares by 5% in after-hours trade.
Jeff Bezos, who founded the company back in July 1994, says, “This was another highly unusual quarter.”
Amazon has seen a rise in its shares by more than 60% this year, adding to the wealth of Mr. Bezos, its biggest stockholder. The S&P 500 is virtually flat.
Amazon’s cloud services are also seeing a high demand as companies switched to a work-from-home scenario due to the pandemic. Revenue from Amazon Web Services (AWS), which sells data storage and computing power in the cloud, rose nearly 29 percent to US$10.81 billion. (Source: The Straits Times)
The Japanese video gaming company, Nintendo’s operating profits skyrocketed 428% in the fiscal first quarter. According to a statement given by the company, it was a wild jump and it reflects how much the video gaming industry is benefitting from the pandemic.
The gaming giant reported an operating profit of 144.7 billion yen (US$1.4 billion) in the April-June quarter and representing an enormous increase from the 27.4 billion yen it posted in the year-ago quarter. (Source: CNBC)
Meanwhile, the net sales grew an impressive 108% from 172.1 billion yen in 2019 to 358.1 billion yen in 2020 around the same period. According to Pocket Gamer, the company’s popular Nintendo Switch and Nintendo Lite consoles also saw a boost in sales with around 167% to 5.68 million units in the quarter. The numbers highlight the boom in demand for gaming during coronavirus lockdowns.
The pandemic has opened up opportunities for video-conferencing tools – which one to talk better about than Zoom. Zoom became one of the companies growing during COVID-19 as the profits skyrocketed.
When the firm sold its first shares to the public last year, it was valued at US$15.9 billion. That shot to more than US$58 billion.
“What Zoom has done is kind of democratized video conferencing for all kinds of businesses and made it very simple for everyone from yoga instructors through to boardroom executives to deploy video,” says Alex Smith, senior director at Canalys.
When the lockdown started and company’s started shifting to a work-from-home environment, Zoom lifted the limits for the free version of its software in many countries helping to drive popularity.
In May, Zoom said that its sales jumped 169% in the last three US$328.2 million by 30th April, as it added more than 180,000 customers with more than 10 employees since January – far more than it had expected.
With the outbreak of coronavirus, people are taking extra steps in staying safe – and this includes sanitizing, bleaching, and cleaning every nook and cranny of their homes. This means a huge profit for cleaning products like Clorox.
According to Clorox, the company’s overall sales jumped 15% for the first quarter. Sales for it’s cleaning segments like wipes and bleaches jumped 32%.
There is obviously increased demand for disinfectants in the market which contributes to the success of booming profits for companies like Clorox. For example, according to research firm Nielsen the sales for aerosol disinfectants jumped 230.5% and multipurpose cleaners 109.1% in March and April.
The impact of COVID-19 on businesses has been huge but you can take lessons from these successful companies on how to grow a company during a crisis.
How is your company surviving through the COVID-19 crisis? Comment down below!
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