Morrisons shows signs of recovery after reporting growth in sales

Morrisons is finally showing signs of recovery as its financial results for the first six months of 2016 are revealed.

The Bradford-headquartered supermarket chain reported a growth in sales for the half yearly mark, with like-for-like (LFL) sales remaining positive for three consecutive quarters.

In the second quarter, ex-fuel LFL was up 2% (Q1: 0.7%), with LFL Number of Transactions rising 4.3% (Q1: 3.1%).

Underlying operating profit was also up 11% to £207m (2015/16: £187m), with margin up 26 basis points year-on-year to 2.6%.

Morrisons’ fuel performance continued to grow with sales up 3.2% to £1.6bn and fuel LFL up 3.5%.

Reported pre-tax profit was £143m, and underlying pre-tax profit before restructuring costs was up 34% to £157m (2015/16: £117m). Furthermore, after adjusting for last year’s restructuring costs, underlying pre-tax was up 11%.

Andrew Higginson, Chairman, said: “The new team has made a real difference and delivered further good progress across the board in the first half.

“Prices are lower, customers are being served better and quality is improving, as demonstrated by Morrisons winning a number of recent prestigious awards such as the 2016 Meat and Fish Retailer of the Year.

“We remain on track to deliver improved profits and returns for shareholders”.

David Potts, Chief Executive, said: “We are pleased with positive like-for-like sales and 11% underlying profit growth in the first half. Our priorities are unchanged. We have made improvements to the shopping trip for customers and we plan to do more.

“I would like to thank the entire Morrisons team of food makers and shopkeepers who are working very hard to Fix, Rebuild and Grow Morrisons. This turnaround opportunity is in our own hands and I am confident we will succeed.”

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