Morrisons posts strong full-year sales and profit growth

The supermarket chain reported an 8.6% rise in profits before tax and exceptionals to £406m in the 52 weeks to February 3, bolstered by a 4.8% climb in like-for-like sales excluding fuel.

Total revenues during the period increased 2.7% to £17.7bn, while revenues excluding fuel rose 5.1%, marking the grocery’s strongest sales growth since its 2009/10 financial year.

Morrisons has bolstered it convenience offering and ended the financial period with a 115-strong store estate for its Morrisons Daily c-store fascia, while its customer satisfaction score was up 20% in four years.

The grocer also reached the milestone of £700m annualised wholesale supply sales during the period, ahead of its end of 2018 target.

The retailer expects to begin supplying McColl’s remaining 300 convenience stores toward the end of 2019 and says it is on track to his £1bn of annualised wholesale supply sales in due course.

Following its strong results, Morrisons has increased its full-year total dividend 24.9% to 12.60p.

Chief executive David Potts said: “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.”

Chair Andy Higginson added: “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.”