Financial summary
Total turnover down 4.9% to £8.5bn (2013/14: £8.9bn)
Like-for-like sales (ex-fuel/ex-VAT) down 7.4% (2013/14: down 1.6%)
Underlying profit before tax down 51% to £181m (2013/14: £371m)
Underlying earnings per share down 52% to 5.74p (2013/14: 11.92p)
Profit before tax £239m (2013/14: £344m)
Interim dividend up 5.0% to 4.03p (2013/14: 3.84p)
Net debt reduced by £209m to £2,608m (FY 2013/14: £2,817m)
2014/15 underlying profit before tax guidance confirmed at £325-£375m
Financial highlights
Strong cash flow progress - £531m better year-on-year
Operating working capital improvement of £145m in the first half
Property disposals of £280m recognised, profits of £54m achieved
New £300m bond and £1.35bn revolving credit facility further strengthen funding profile
Triennial pension review completed - schemes remain well funded
Strategic and operating highlights
Action across the business to implement new three-year plan
All components of the £1bn self-help programme on track:
o £105m achieved in the first half
o simplified in-store management structure being introduced
o range reduction - over 2,000 SKUs removed
Investments to improve and modernise the business progressing well:
o lower prices driving volume recovery - Q2 Items per Basket 480bps better than Q2 LFL; Produce items 760bps better than Q2 LFL
o Items on Promotion down 13% year-on-year in Q2
o promotional participation now falling year-on-year
o launching our Morrisons card soon, after successful trials
Online and M local roll-outs progressing well
Sir Ian Gibson, Non-Executive Chairman, said:
"Conditions are tough, and the industry is going through unprecedented change. Our first-half results reflect the reset of the business we announced in March. Morrisons is now well underway with building the foundations for a better future. The Board is confident of the new strategy and Morrisons financial position remains strong. In line with the policy we set out in March, we are increasing the interim dividend by 5% to 4.03p, and confirm our commitment to pay a total dividend for 2014/15 of not less than 13.65p.
