12th May 2020 08:53
(Alliance News) - Wm Morrison Supermarkets PLC on Tuesday reported sales growth in the first quarter despite "highly volatile" trading and a worse-than-expected Easter due to the ongoing coronavirus lockdown in the UK.
Shares in the company were up 1.9% at 192.50 pence each in London.
For the 14-week period from February 3 to May 10, the grocer said like-for-like sales excluding fuel were up 5.7% - with retail sales up 5.1% and wholesale up 0.6%. Total sales were up 5.7% excluding fuel, and down 4.0% including fuel.
Morrisons said that retail like-for-like sales were up 5.0% for the first six weeks of the year. Sales were flat in the first four weeks of financial 2021, with weeks five to seven being marked by "considerable stocking up" by customers, lifting sales.
"At this stage, the impact of Covid-19 remains uncertain. We continue to monitor various 2020/21 sales, profit and cash flow scenarios, but have minimal certainty or visibility around a precise outcome," Morrisons said.
The FTSE 100-listed retailer is predicting costs relating directly to Covid-19 pandemic in financial 2021 to be broadly offset by the UK government's business rates cost-saving, but the actual net effect is dependent on the length of the crisis and how customers respond as lockdown eases.
Morrisons has deferred its special dividend payout for financial 2020 due to "the unprecedented nature of events around Covid-19". In March, the company announced its intention to declare a special payout.
The Bradford, England-based company also has kept its capital allocation options under review, giving it flexibility over prioritising using its cash
By Tapan Panchal; [email protected]
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