Morrisons’ comparable sales jump 8.1% amidst the new COVID-19 restrictions

WM Morrison Supermarkets plc (LON: MRW) said on Tuesday that its underlying sales posted a significant increase on a year over year basis in the 22 weeks that concluded on 3^rd January. The company attributed the increase in sales to the Coronavirus pandemic that restricted people to their homes again in recent months.

Morrisons opened more than 0.5% down on Tuesday but jumped over 1% in the next hour. Including the price action, the stock is now exchanging hands at 181 pence per share versus a lower 162 pence per share in the first week of November when the UK announced new restrictions to combat the pandemic. If you want to invest in the stock market online, you will need a reliable stockbroker – here’s a comparison of the top few to make selection easier for you.

Morrisons’ maintains forecast for annual pre-tax profit

The COVID-19 crisis has so far infected more than 2.7 million people in the United Kingdom and caused over 75 thousand deaths. Last week, Morrisons’ peer Aldi said it will increase purchase of food and drinks from British suppliers by £3.5 billion over the next five years.

Excluding fuel, Morrisons said, its comparable sales jumped 8.1%. In comparison, experts had forecast an even broader 8.3% rise in its sales. In the fiscal second quarter, the fourth largest British supermarket group had posted a 12.3% increase in sales.  

In a previous estimate, the Bradford-based company had forecast its pre-tax profit and exceptionals to fall between £420 million to £440 million, before a £230 million of business rates payment. On Tuesday, the company reiterated that it anticipates its pre-tax profit and exceptionals to meet its earlier expectations.

Morrisons’ to help the government roll-out the COVID-19 vaccine

In a separate announcement on Tuesday, CEO David Potts also said that he had offered PM Johnson’s government to roll out the COVID-19 vaccines using Morrisons’ car parks. The plan is expected to be implemented from 11^th January, starting with three of the supermarket chain’s car parks. As per Potts:

“We have offered up another 47, subject to requirements of the country and the availability of the vaccine.”

Morrisons’ performed fairly downbeat in the stock market last year with an annual decline of roughly 20%. At the time of writing, the British chain of supermarkets has a market cap of £4.35 billion and a price to earnings ratio of 16.58.