Marks and Spencer Group plc has posted full year results for 52 weeks ended 1 April 2017, revealing food revenue growth of 4.2%, which was driven by new stores. Gross margin was down 25bps due to input cost inflation and higher than anticipated waste..
Adjusted profit before tax was down 10.3% due to the expected decrease in Clothing & Home sales and increased costs of new space. Significant adjusted items of £437.4m resulted in profit before tax down 63.5% as the firm established a base from which to grow.
CEO Steve Rowe (pictured) said, “Last year we outlined a comprehensive plan to build strong foundations for the future. We said we would recover and grow clothing and home, continue with our plans for Food growth, remove costs and simplify the business. We achieved a huge amount in the year and whilst there is still much to do, I am pleased with our progress and we remain on track.
“As we have made improvements to our Clothing & Home product and proposition, our customers have noticed; we are starting to stabilise market share and importantly have seen full price market share growth, as we removed excessive discounting. In addition, our new Food stores continue to exceed our expectations.
“As we anticipated, the planned restructuring of M&S has come with a cost and has impacted profits, but the business is still strongly cash generative and we reduced our net debt.
“Looking ahead, we will continue our programme of self-help in a tough trading environment. We remain committed to delivering for our customers and shareholders as we build sustainable foundations for the future.”
Chairman Robert Swannell said, “This has been a year of accelerated change at M&S, as Steve set out his plan for a simpler business, focused on customers. We believe these actions will make M&S a stronger, sustainable business. We are maintaining a total dividend per share at 18.7p, the same level as last year, taking into account the strong cash generation of the business.”
