Last updated 10/09/2009
Financial summary
• Turnover up 5.0% to £7.5bn (2008/9: £7.1bn)
• Like for like sales (ex VAT and fuel) up 7.8% (2008/9: 7.7%)
• Profit before tax £449m (2008/9: £309m)
• Underlying profit before tax up 22% to £359m (2008/9: £295m)
• Net debt £885m (2008/9: £458m) after capital investment of £572m
• Gearing of 19% (2008/9: 10%) and interest cover of 18 times
• Interim dividend up 35% to 1.08p
Operating highlights
• 22 new stores opened in the period
• New Sittingbourne regional distribution centre open ahead of schedule
• Optimisation Plan outperformance confirmed
• 5,000 new jobs created
Sir Ian Gibson, Non Executive Chairman, said:
“We are pleased with these interim results which reflect our broad appeal as the food specialist for everyone. Morrisons has gained over one million new customers in the past two years, and the management team’s priority is to build on this success by continuing to offer outstanding day to day value to all our customers as the pressure on consumer spending continues through 2009.”
Marc Bolland, Chief Executive, said:
“This has been an excellent first half performance from Morrisons, continuing our run of market beating sales growth. We offer great value to our customers, particularly our offers on fresh food delivered through our own preparation facilities, which have been hugely popular with a growing number of customers. The business is performing well in all parts of the country and we are making good progress on our plans to move from National to Nationwide.”
Outlook
We expect market growth to slow in the second half as inflationary pressures ease. The business' performance to date, the successful implementation of the Optimisation Plan and our continuing customer gains give the Board confidence that we will deliver our profit expectations for the year.