Morrisons forecast to report £300m Covid-related costs in full-year results
Morrisons is expected to report coronavirus-related costs of almost £300m in its full-year results next week due to the impact of the third Covid-19 lockdown.
In a note to investors, analysts at Shore Capital Markets estimated that the current national lockdown will have elevated operating costs around absenteeism and temporary workers, as well as mounting sanitation charges.
The supermarket is forecast to report profit before tax and exceptional items of £200m when it posts its preliminary results for the 2020/21 financial year on Thursday.
Profit has been impacted by the repayment of £230m in business rates, which the grocer voluntarily repaid.
Group like-for-like sales are expected to be up 7.9 per cent due to a surge in demand during the coronavirus pandemic.
It is also anticipated that the Big Four grocer will pay an ordinary dividend per share of 6.79p, which is based on profits before business rates were paid, according to analyst consensus.
Earlier this week, the firm announced that 300 McColl’s convenience stores are set to be converted into Morrisons Daily’s over the next three years as the grocer expands its local supermarket format.
Convenience stores have benefited from the coronavirus pandemic as restrictions on travel caused an uptick in demand for local shops.