Morrisons has today updated investors on Q2 trading for the 13 weeks ended 27 April 2025.
Key points
● Group like-for-like (LFL) sales up 3.9%
● Total sales up 4.2% to £3.9 billion
● Underlying EBITDA for H1 up 7.2% to £344 million
● Successful in-store trials of new initiatives including a more focused range,
improvements to Market Street and a new World Foods offer
● Further strong growth in convenience, with 42 franchise stores opened in the quarter, bringing the total number of Morrisons Daily stores to over 1,700, an increase of 120 year on year
● Further £58m of cost savings, with initial £700m target now exceeded. Target increased at Q1 to £1 billion by the end of FY26
● Partnership agreed with a global, market leading analytics company, to derive commercial insights from Morrisons retail data
Rami Baitiéh, Chief Executive, said: “I’m pleased to report that Morrisons has bounced back strongly from the disruption of the Blue Yonder cyber attack in November 2024 with like-for-like sales growth of 3.9% in the
second quarter.
“Against the backdrop of a challenging macro environment, with inflation driving subdued consumer sentiment, value remains at the forefront of customers’ minds. Throughout the first half we’ve worked hard on helping customers through these challenges with a rigorous focus on price, promotions and meaningful rewards for loyalty.
“The renewal and modernisation of Morrisons continues at pace. During the period we commenced trials of a number of new in-store initiatives including a new look Market Street with Farm Shop influences and more added-value products; a new World Foods offer; and a tighter, sharper range which highlights innovation and newness across the store. Customer
reaction has been very positive with Morrisons fresh food strengths and outstanding value shining through strongly. We also made strong progress with the expansion of Morrisons Daily, opening 42 new franchise-owned stores in the quarter, and we see potential for hundreds more franchise-owned stores as we expand further in the growing and fragmented
convenience market.
“I would like to thank all of our valued colleagues for their hard work and dedication as we continue to move forward with plans to grow and improve our business."
Jo Goff, Chief Financial Officer said: “We’ve delivered a solid performance for Q2, reflecting the broad-based progress being made across the business. LFL sales strengthened in the period, in what was our tenth consecutive quarter of LFL growth, with positive contributions from across the business supporting growth in underlying EBITDA and a robust cash performance. In addition, we are successfully delivering further cost savings to enable us to continue to offset cost headwinds. Having delivered over £700m, our target has now been increased to £1 billion, with the remaining savings to be delivered over the next 18 months.”