Marston’s sales slide 30% in fiscal 2020 due to the Coronavirus pandemic
- Marston’s sales slide 30% in fiscal 2020 due to the Coronavirus pandemic.
- The British pub operator to cut 2,150 jobs due to new COVID-19 restrictions.
- Home furnishing retailer Dunelm posts a 37% increase in quarterly sales.
Marston’s plc (LON: MARS) published its full-year trading statement on Thursday that reported sales in fiscal 2020 to have taken a significant hit due to the Coronavirus pandemic that has so far infected more than 650 thousand people in the United Kingdom and caused over 43 thousand deaths.
Marston’s to cut 2,150 jobs due to new COVID-19 restrictions
New restrictions attributed to the COVID-19 crisis, the company added, will result in a sizeable job cut affecting 2 thousand workers. According to Marston’s:
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
“Because of the recent additional restrictions, we have reluctantly concluded that around 2,150 pub-based roles currently subject to furlough are going to be impacted.”
The UK Competition and Markets Authority (CMA) approved £780 million joint venture between Marston’s and the UK brewing arm of Carlsberg last week.
For the financial year that concluded on 3rd October, the British pub operator posted a 30% annualised decline in sales to £821 million. Pub sales, it added, came in at £515 million in fiscal 2020 while it generated £306 million of sales from Marston’s Beer Company. Pub and Beer Company sales were down 34% and 22% respectively on a year over year basis.
Shares of the company were reported 2.5% down in premarket trading on Thursday and tanked another 3.5% on market open. On a year to date basis, the company that has a market capitalisation of £265.63 million is now more than 65% down in the stock market.
Dunelm posts a 37% increase in quarterly sales
In separate news from the United Kingdom, Dunelm Group plc (LON: DNLM) said on Thursday that its sales in the fiscal first quarter came in 37% higher on the back of increased online sales. The home furnishing retailer also reopened its stores for the public in recent months as the government eased COVID-19 restrictions, resulting in a further boost to its financial performance in Q1.
In the quarter that concluded on 26th September, the British company said that it generated £359.1 million of sales versus £262.6 million in the same quarter last year. Digital sales, it added, made up 29.7% of its total quarterly sales versus 17.6% last year.
Dunelm also said on Thursday that it will repay £14.5 million that it received under the state-backed job retention program. In an earlier report, Dunelm had revealed a 24% annualised growth in sales in August.
The £3.04 billion company that has a price to earnings ratio of 34.98 is currently 30% up year to date.