INTERIM RESULTS FOR THE HALF YEAR TO 29 JULY 2012
Steady progress in a challenging environment
Financial summary
- Turnover up 2.3% to £8.9bn (11/12: £8.7bn)
- Like-for-like sales (ex-VAT and fuel) down 0.9% (11/12: up 2.2%)
- Underlying profit up 1% to £445m (11/12: £442m)
- Underlying earnings per share up 10% to 13.09p (11/12: 11.91p)
- Profit before tax £440m (11/12: £449m)
- Interim dividend up 10% to 3.49p (11/12: 3.17p)
- Net debt of £1,680m (11/12: £1,055m), after equity retirement of £628m
- Gearing of 32% (11/12: 20%)
Operating and strategic highlights
- Fresh Formats now in 45 stores: on track for over 100 stores this year
- M savers fastest growing own label value brand with sales up 40% (3)
- Catalina voucher at till system launched
- Good progress on expanding manufacturing capability: integration of Winsford fresh meat facility on track; fresh seafood site in Grimsby operational
- Online to launch in H2, with Morrisons Cellar wine range
- M local convenience format to launch in London supported by our new Convenience Distribution Centre
- Financial discipline maintained through rephasing of planned investment in new stores: £100m reduction in capital expenditure
- Awarded Grocer of the Year and Employer of the Year
Sir Ian Gibson, Non-Executive Chairman, said:
"With ongoing commodity inflation continuing to weigh on already fragile consumer confidence and market conditions becoming ever more challenging, we have had to work even harder for our customers during the first half. Against this backdrop, Morrisons has increased sales and underlying earnings and delivered good dividend growth."
