LONDON, 20 (EUROPA PRESS)
British fashion and food chain Marks & Spencer (M&S) posted a net profit of £ 27.4 million (€ 30.6 million) at the close of its fiscal year, representing a 39.5% drop compared to its previous year, as reported by the multinational, which will adopt measures worth 1 billion pounds (1,118 million euros) to tackle the Covid-19 crisis.
The British firm’s sales reached 10,181.9 million pounds (11,387 million euros), 1.9% less than a year earlier, with an 8.3% drop in the turnover of the fashion and home business, while the food area grew 2.1%. The international M&S business reduced its revenues by 2.5%.
“Last year’s results reflect a year of substantial progress and change, including transformative investment in Ocado Retail (…) However, today it seems like ancient history, as the trauma of the Covid crisis has galvanized our colleagues to ensure the future of the business, “said Steve Rowe, CEO of M&S.
In this sense, the company has adopted different measures valued at more than 1,000 million pounds to address the scenario created by the Covid-19 crisis, including a cost adjustment of some 500 million pounds (560 million euros), thus such as a review of the terms of the renewable credit of 1,100 million pounds (1,232 million euros) and the confirmation that the company is eligible for government aid.
According to the scenario managed by M&S for its financial year 2020/21, the pandemic will reduce sales in the first quarter (April-June) in fashion and home in the UK by 74%, while the turnover of the food business will fall by 20% Internationally, revenues will decrease by 51%.
Thus, in the current financial year as a whole, the multinational anticipates a drop of 46% in its fashion and home sales in the United Kingdom, although the decrease in the food area will be 6%. For its part, the company’s international turnover will drop by 22%.
However, the British firm highlighted that in the first six weeks of business corresponding to this year, its activity has been above that foreseen in this scenario, particularly in the food and online segments.
Thus, although its fashion and home sales in the United Kingdom have fallen by 75% during the period and international turnover has dropped by 51.3%, its food business has only decreased by 8.8%, which translates into an annual fall of 32.7% for the company as a whole.