Supermarket chain, Morrisons has announced its interim results for the half year to 20 July 2017.
Group like-for-like (LFL) sales ex-fuel/ex-VAT grew by 3.0% (2016/17: 1.4%). The group's Q2 LFL's, ex-fuel/ex-VAT, rose by 2.6% - a two-year Q2 LFL growth of 4.7%.
During the period, the company saw turnover grow by 4.8% to £8.42bn (2016/17: £8.03bn).
Underlying profit before tax rose by 12.7% to £177m (2016/17: £157m) and reported profit before tax (PBT) up 39.9% to £200m (2016/17: £143m)
The group's plans include extending the new store-pick online service into North East England. Also, Safeway brand is being revived and will be available soon, initially at McColl’s.
The new wholesale supply agreement with McColl’s was announced after the period end.
Andrew Higginson, Chairman, said, 'This is another good performance from Morrisons. Our seventh consecutive quarter of positive like for like means that we are able to report profit growth on growth for the first time in the turnaround.
“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
David Potts (pictured), Chief Executive, said, “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.
'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.”
Morrisons stated it remains confident as it continues to grow and expects net debt to remain less than £1bn for the rest of 2017/18.
Following the recently announced supply agreement with McColl’s, the firm expects total annualised wholesale sales to all our partners to exceed £700m (inc. tobacco) by the end of 2018. It expects wholesale supply sales to be more than £1bn in due course.
During the first half, the group achieved a further £14m incremental profit from wholesale, services, interest and online, bringing the total to £32m so far. It now expects £75m–£125m of incremental profit before tax from these four areas in the medium term, increased from £50m–£100m previously.
The new profit guidance includes its new wholesale supply agreement with McColl’s, which we expect to start making an initial profit contribution from 2018/19.