Financial summary
Turnover up 3% to £18.1bn (2011/12: £17.7bn)
Like-for-like sales (ex-fuel, ex-VAT) down 2.1% (2011/12: up 1.8%)
Underlying profit before tax down 4% to £901m (2011/12: £935m)
Profit before tax £879m (2011/12: £947m)
Earnings per share 26.7p (2011/12: 26.7p)
Underlying earnings per share up 7% to 27.3p (2011/12: 25.6p)
Total dividend for the year up 10% to 11.8p (2011/12: 10.7p) - dividend cover of 2.3 times (2011/12: 2.4 times)
Net debt £2,181m (2011/12: £1,471m) after capital investment of £1,016m (2011/12: £901m)
Equity retirement £579m in the year, (2011/12: £368m). Programme now completed
Strategic highlights
Fresh Formats - tailored fresh food proposition now in over 100 stores - and continuing to perform to plan: programme to expand in 2013/14
Vertical integration - good progress on expanding manufacturing capability; Winsford fresh meat facility and fresh seafood site in Grimsby operational and performing well
Catalina voucher at till system implemented in all stores
Convenience- first 12 M local convenience stores performing well; first stores in London now open; accelerated target established for 2013/14; West London convenience distribution centre (CDC) open; additional CDC to support expansion in the North of England
Multi-channel - Morrisons Cellar successfully launched; three new Kiddicare stores opened; Online - Morrisons first online food operation to launch in 2014
Operating highlights
17 new supermarkets opened
5,000 own brand products successfully launched; M savers the fastest growing own label value brand - sales up 37%
4% productivity improvements in stores and distribution
IT systems replacement programme on track - providing foundation for accelerated cost savings in 2013/14
Financial discipline maintained through rephasing of planned investment in new stores: £200m reduction in capital expenditure
Grocer of the Year and Employer of the Year
Commenting on the results, Sir Ian Gibson, Chairman, said:
"Although this has been a difficult year in trading terms for Morrisons as we struggled to grow sales in a tough consumer environment, we have delivered a 7% improvement in underlying earnings per share and announced a 10% dividend increase, in line with our previously stated policy. It has also been a period of significant strategic progress as we continue to lay the foundations for future growth".
