Last updated 09/09/2010
Financial summary
• Turnover up 9.1% to £8.1bn (09/10: £7.5bn)
• Like-for-like sales (ex VAT and fuel) up 0.9% (09/10: 7.8%)
• Underlying profit before tax up 14% to £410m (09/10: £359m)
• Profit before tax £412m (09/10: £449m after exceptional credit of £91m)
• Net debt £849m (09/10: £885m) after capital investment of £236m
• Gearing of 17% (09/10: 19%)
• Interim dividend up 14% to 1.23p (09/10: 1.08p)
Operating and strategic highlights
• Record weekly average number of customers, up 800,000
• Investing further in food production, a unique point of difference for Morrisons
• Major systems replacement programme on track
• Development of new South West regional distribution centre under way
• First convenience store trials to take place in 2011
• Internet grocery assessment under way
Sir Ian Gibson, Non-Executive Chairman, said:
“Our first half performance has been solid, in a tight market. At a time when value is a priority for everyone we have continued our run of market beating sales growth, attracting more customers to Morrisons than ever before, reflecting our broad appeal. Our new CEO, Dalton Philips, has made a great start in the business and with the leadership team is developing positive plans for the next phase of growth for Morrisons.”
Dalton Philips, Chief Executive, said:
“Over the last six months I have spent time getting to know this great business and its people. Three observations stand out: Morrisons is a world class retailer; it has real and positive differences in its fresh offer, food production and craft skills; and there are many opportunities ahead to drive our top line, increase efficiencies in the business and to capture growth. Today we are outlining plans to build on our strengths and generate profitable growth.
I am delighted to be leading a great company and with the whole team, I am determined to make Morrisons Better than Ever”.
Outlook
We expect low market growth to continue in the second half of the year, with further pressure on the consumer. We entered 2010 anticipating this tight environment, and are managing the business accordingly. We continue to gain new customers and to exercise strong control of costs, and as a result the Board has confidence that we will deliver our profit expectations for the year.
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View the full half yearly results announcement (pdf)