Morrisons sees profits fall & expects driver shortage to effect prices

Morrisons supermarket chain has published its interim results as it expects the UK's lorry driver shortage to stoke inflation during the rest of this year.

For the half year to 1 August 2021, the group showed that total revenue including fuel was up 3.7% to £9.05bn (2020/21: £8.73bn), and Group LFL ex-fuel/ex-VAT down 0.3% (2020/21: up 8.7%).

However, profit before tax and exceptional items stood at £105m, down from £167m in the same period last year.

The supermarket said that the lack of drivers, plus higher freight charges and commodity prices, could lead to higher prices, but it would seek to mitigate those and other potential cost increases, such as any incurred in maintaining good product availability.

Chair Andrew Higginson said, 'Across the business the whole Morrisons team has shown commendable resilience facing into a variety of continuing challenges during the first half, including the ongoing pandemic, disruption at some of our partner suppliers, and the
impact on our supply chain of HGV driver shortages.

'As we approach our busiest time of year, I'm confident the team will continue to rise to all challenges and keep up all the good work to improve the shopping trip for customers.'

David Potts, Chief Executive, (pictured) said, 'I want to thank all Morrisons colleagues for their unswerving dedication and commitment during the long pandemic period. Their innovation, enterprise, hard work and boundless compassion have shone through, and a new Morrisons is taking shape.

'You are a special team and together have built a strong and broad foundation on which Morrisons will thrive in the future.'