Morrisons turnaround ‘well on track’ as revenues hit £17.7bn

Morrisons has reported a third consecutive year of growth in revenue and profits during a “challenging period” throughout 2018.

For the year ending 31 December 2018, the Bradford-headquartered supermarket saw revenues rise by 2.7% from £17.3bn to £17.7bn year-on-year.

Group like-for-like sales excluding fuel were also up 4.8%, comprising contributions from retail of 1.5% (supermarkets 1.2%, online through CFCs 0.3%) and wholesale of 3.3%. Fuel sales slightly rose by 1% to £3.8bn.

During this period, pre-tax profits before exceptionals rose by 8.6% to £406m and operating profit before exceptionals was also up 4.5% to £465m.

However, statutory pre-tax profits reported a 15.8% drop to £320m, compared to the £380m achieved the year prior.

Throughout the year three new stores opened, adding an additional 68,000 square feet to the Morrisons portfolio.

Andrew Higginson, chairman of Morrisons, said: “In a challenging period for customers and an ever-changing British retail scene, the turnaround at Morrisons has continued to progress well. The team has now completed four years of important work, building Morrisons as a broader, stronger business.

“I am delighted that sales and profit again grew strongly, and that we are able to share that growth with our shareholders through increased dividends.”

David Potts, Morrisons Chief Executive, added: “A third consecutive year of strong sales and profit growth, and a total annual dividend up over 150% during those three years, show the Morrisons turnaround is well on track.

“This turnaround is based on improving the shopping trip for customers, making Morrisons more popular and accessible.

“And our customers are noticing. Most pleasing of all was another big increase in customer satisfaction, now up a full 20% points in the last four years, which is all down to the friendliness and expertise of our team of unique food makers and shopkeepers.”

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