Marston's sales take £40 million hit from coronavirus lockdown
Pub group Marston's today said it was uncertain about its financial outlook in the short-term following a roughly £40 million hit to sales from the coronavirus lockdown.
The Wolverhampton-based company, which is preparing to reopen pubs across the West Midlands on July 4, has posted an underlying pre-tax profit of £9.4 million for the six months ended March 28, compared to £34.2 million last year.
Its underlying revenue also dropped from £553.1 million to £510.5 million over the same period.
In March, the Government had ordered all pubs to close in order to curb the spread of the coronavirus, which further hit the country's pub industry that has been grappling with rising costs and changing consumer habits.
To combat the impact from the coronavirus outbreak, Marston's has furloughed over 13,000 employees, cut management pay and suspended dividend payments this year.
The company said it had reduced debt by £39 million to £1.38 billion, excluding lease liabilities, as of March 2.
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It comes as Marston's is set to combine its brewing business with Carlsberg UK. It said the partnership with Carlsberg UK provides a strong platform for post-pandemic recovery.
Chief executive Ralph Findlay said: "Our immediate priority is to prepare our pubs to reopen on July 4.
"Whilst there is short term uncertainty as the sector emerges from lockdown, we are focussed on offering a great guest experience, synonymous with Marston's hospitality, to welcome our customers back into our pubs within a safe trading environment.
"The challenges facing the sector should not be underestimated and much rests on consumer confidence which may take time to rebuild.
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"As the industry navigates its way out of lockdown, we will continue to urge the Government for continued support for pubs and wider hospitality, through the reopening phase and thereafter through business rates relief and cuts to VAT, to protect jobs, the economy and the invaluable role the pub plays in communities nationwide.
"Looking ahead, our transformational deal with Carlsberg positions the company well for the future.
"Post completion, Marston's will be a focussed pub and accommodation business with a significantly strengthened balance sheet, well placed to rebuild trading momentum and leverage the market opportunities available to us over the medium to longer term."
