Mahou earned 98% less in 2020 | Economy

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Entrance of the headquarters of Mahou San Miguel, in Madrid.
Entrance of the headquarters of Mahou San Miguel, in Madrid.MAHOU SAN MIGUEL / MAHOU SAN MIGUEL

Mahou San Miguel, one of the large beer groups in Spain, avoided losses in the 2020 financial year: it obtained a profit of 2.3 million, 98% less than the profits of a year before, as Alberto Rodríguez explained this Thursday- Toquero, CEO of the company. A poor result, but one that is welcomed with some satisfaction, as the company itself expected to end in losses from the pandemic.

Most figures show the sinkhole caused by the virus. The main one, the 10.5% reduction in turnover, which stood at 1,252 million euros, and ebitda (profit before interest and taxes), which stood at 166.3 million, 43.7% less , as explained by the firm on Thursday in the presentation of its results.

The collapse is mainly due to the poor performance of the hospitality sector, which has been severely punished first by total closures and then by limitations on its commercial activity to control infections. The decline in this channel for the year as a whole was 36.4%, according to Mahou San Miguel. This collapse was partially offset by the growth of the food channel (+ 10% compared to the previous year), but in no case did it manage to cushion the fall of the horeca channel (hotels, restaurants and cafeterias).

“Until the pandemic, the hospitality industry has always represented more than 50% of the turnover. In 2019 it stood at 55%. However, in 2020, it has remained below 40% and the food channel is now the one that weighs the most ”, Rodríguez-Toquero explained at a press conference.

Despite the difficult year, the company has maintained its investment plans and has even promoted others. For example, more than 200 million have been dedicated to the aid plan for hoteliers. Among other projects, this amount includes the extraordinary contribution of product to bars and restaurants and the conditioning of terraces for 65,000 hotel clients of the brewery.

In addition, the growth and acquisitions plans are maintained. “We have a vocation to continue reinvesting and we do not stop looking for opportunities. Especially in the US, which is a market where our experience is very satisfactory. And also in the Spanish market ”, has influenced the general director of Mahou San Miguel.

Bad start to 2021

The start of the year has not been good either, both because of the coronavirus that struck again with a new wave of infections after Christmas and because of the cold and snowy storm. “The start of January and February has been bad, due to the cold and the new restrictions and closures of the hotel industry”, Rodríguez-Toquero has advanced, although he is optimistic about the whole of the year: “It will be better than 2020, everything points to that address”. This leaves a drop in sales in the first quarter of 8.9% in Spain, the main market for the firm. By channels, the trend of the previous year continued: the hotel industry fell 31.7% and food sales grew 8.6%.

Another factor that has improved its overall figure for the year is online sales. During the confinement, the general director of the company has assured, up to 300 daily orders were received through its electronic commerce channel, reaching 700 during the weekend.

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