UK retailer Morrisons has posted a reported profit before tax increase of 39.9% in the first half of its financial year, to £200 million (2016/17: £143 million).
Group like-for-like sales were up 3.0% at the retailer, with turnover for the period standing at £8.42 billion.
Fix, Rebuild and Grow
The group said that the ‘strong sales, profit and dividend growth’ for the period was due to its ‘Fix, Rebuild and Grow’ strategy, which has enabled it to drive cost savings of more than £1 billion, generate free cash flow, and explore new areas, such as the recently announced supply agreement with the McColls convenience chain.
"A new Morrisons is beginning to take shape. The capability of the team continues to improve and we are making strong headway with our plans to Fix, Rebuild and Grow,” said chief executive David Potts.
“Our supermarkets continue their focus on improving the customer shopping trip and, in wholesale supply, we are beginning to realise some of the opportunities that our unique team of food makers and shopkeepers bring us."
Looking ahead to the rest of the year, Morrisons said that it expects net debt at the business to remain less than £1 billion for the rest of the year, and following the McColls deal, it anticipates total annualised wholesale sales to all our partners to exceed £700 million (inc. tobacco) by the end of 2018.
"With good trading momentum and a strategy to build a broader, stronger Morrisons, the business is well set to continue to deliver consistent and sustainable growth for its stakeholders,” commented Andrew Higginson, chairman.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.