Morrisons update on 2021/22 full year trading
Published:26 January 2023

Key points

  • Total revenue up 2.2% to £18.4bn
  • Group like-for-like (LFL) sales ex-fuel down 4.2%; sequential improvement over last two quarters
  • Adjusted EBITDA at top end of guidance at £828m; down 15% year on year, with Q4 up 26%
  • On a three year basis LFL ex-fuel was up 2.6%; and up 3.4% including fuel
  • Strong progress on price competitiveness
  • Acquisition of McColl’s delivered leading position in convenience market
  • Continued investment in, and improvement of, loyalty programme
  • Improving sales momentum during 2021/22 and into Christmas
Full Year
Full Year
Revenue inc-fuel£4.46bn£18.39bn£4.43bn£17.98bn
Group LFL ex-fuel (%)(2.0)%(4.2)%(2.3)%1.4%
Group LFL inc-fuel (%)0.3%2.1%1.3%2.2%
Adjusted EBITDA*£263m£828m£208m£975m

*Adjusted EBITDA is defined as operating profit plus depreciation and amortisation, less cash operating leases and business rates relief phasing, plus exceptional items, supply chain disruption and direct Covid costs

 Q1Q2Q3Q4Full YearChristmas*
Group LFL ex-fuel(5.0)%(6.4)%(3.1)%(2.0)%(4.2)%2.5%
Group LFL inc-fuel1.3%2.5%4.3%0.3%2.1%4.0%

*3 weeks ended 25th December

Morrisons has today updated investors on full year trading for the 52 weeks ending 30 October 2022.

With continued high food inflation, rising interest rates, an ongoing cost of living crisis and the war in Ukraine set to enter its second year, there is a continuing sense of uncertainty in consumer sentiment. 

Group revenue for the year was up 2.2% from £18.0bn last year to £18.4bn and Group LFL sales, excluding fuel, were down 4.2% but on a steadily improving trend over the last two quarters.  This sales momentum continued into the new financial year with sales in the three weeks before Christmas up 2.5% on last year.  

Looking through the pandemic, on a three year basis, Group LFL sales excluding fuel were up 2.6%, and up 3.4% including fuel.

Adjusted EBITDA was £828m, at the top end of the guidance given at Q3.


During 2022/23, we expect continued cost and other inflationary headwinds, but we are confident that improved trading momentum and our various cost saving programmes will more than offset these, and expect EBITDA to be up year on year. In addition, we have identified several working capital opportunities and are now planning for an improvement of at least £500m in the medium term.

David Potts, Chief Executive, said:

“In a very difficult period for consumers and businesses alike, we are continuing to do everything we can to keep prices down for customers and to support our colleagues. 

“As a vertically integrated retailer, we felt the impacts of last year’s racing inflation more immediately than our competitors and this did have an impact on our pricing position.  However, since October we have executed a rolling programme of meaningful price cuts, price freezes and fuel promotions for our customers and our competitive position has considerably sharpened.  I’m particularly pleased with the impact of the changes to our entry level range in early January with over 130 Savers prices cut and the range increased, which has been really popular with our customers.  

“Our Christmas trading continued the positive momentum of the last two quarters with a 2.5% increase in sales against last year, as we pulled out all the stops to help our customers celebrate with style and great quality, despite the economic uncertainty.

“Looking ahead, this current year has many opportunities. We have clear plans in place to continue to invest in price and in hours in our stores; to open new supermarkets and further refresh the core estate; to invest in McColl’s and accelerate the conversion programme; to develop further the fast-growing My Morrisons app and to grow volumes through our unique food making operations around the country. Together I’m confident that these moves will enable us to make further significant progress in developing Morrisons into a broader, stronger, more accessible and more popular business.   

“Throughout the year Morrisons colleagues once again rose to the occasion and their warmth, professionalism and passion for looking after our customers makes Morrisons what it is today. Their understanding of the impact of the cost of living crisis on individuals, families and communities, and their determination to give help and support, is evident in our stores every day and I want to thank them for their phenomenal effort over last year.”