LONDON (UK) – British pub operator Marston’s said on Friday it was uncertain about its financial outlook in the short-term as it prepares to reopen pubs and restaurants on July 4. It recorded a roughly 40 million pound hit to sales because of the coronavirus lockdown.
Marston’s, which is set to combine its brewing business with Carlsberg UK, posted an underlying pretax profit of 9.4 million pounds for the six months ended March 28, compared to 34.2 million pounds last year.
The closure following the lockdown hit the country’s pub industry that has been grappling with rising costs and changing consumer habits.
“Looking forward, it is clear that there will be contraction of supply in the eating and drinking out market as a consequence of COVID-19,” the company said.
Marston’s, the two-century old brewer of Pedigree, Hobgoblin and Lancaster Bomber beers, said it had reduced its monthly expenditure to 10 million pounds and that the partnership with Carlsberg UK provides a strong platform for post-pandemic recovery.
“Marston’s… had a more precarious capital structure pre-COVID 19, but has struck a neat deal with CMBC (Carlsberg Marston’s Brewing Company), allaying pressing liquidity concerns,” Stifel analysts said.
“However, it does not ‘solve’ the capital structure entirely.”
Marston’s has furloughed over 13,000 employees, cut management pay and suspended dividend payments, among other things, this year.
The company said it had reduced debt by 39 million pounds to 1.38 billion pounds, excluding lease liabilities, as of March 28.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field