- Broad based progress across the business -
- Q4 LFL strongest quarterly performance for almost four years -
Morrisons has today updated investors on full year and Q4 performance for the 52 and 13 weeks ending 27 October 2024.
Key points
- Full year Group like-for-like (LFL) sales up 4.1%; Q4 LFL sales up 4.9% - the strongest quarter since the start of 2021
- Full year underlying EBITDA up 11.2% to £835 million
- Full year total revenue up 3.8% to £15.3 billion; Q4 up 4.8% to £3.8 billion
- Sale of petrol forecourts to MFG for £2.5 billion completed in April 2024
- Operating cash flow of £401 million in full year
- Good progress throughout the year on availability with an improvement of 4 percentage points on fresh availability
- Morrisons More Card linked sales grew to 68% at the year end; 76% today
- Price Match to the Discounters extended through the year, now covering over 500 essential and popular products
- Acquisition of 36 convenience stores in the Channel Islands completed in November 2024
- Debt reduced by 40% from its peak
- Continued growth in convenience store estate - now standing at over 1,600 stores
- Sir Ken Morrison Leadership School for colleague development now onto third cohort with plans for a total of over 1,000 students either graduated or in school by end of 2024/25
Group LFL sales were up 4.9% for Q4 and 4.1% for the year, representing eight consecutive quarters of positive LFL sales. The fourth quarter was the strongest LFL sales improvement for almost four years.
Underlying EBITDA from continuing operations was £835m, up by 11.2% from £751m last year.
Rami Baitiéh, Chief Executive, said:
“This has been a year of urgent reinvigoration and positive progress for Morrisons. Customer transactions increased, market share grew from Q2 and we saw positive switching from our competitors.
“The improvements across the business have resulted in better availability in our stores, sharper prices, more effective promotions and a strong and growing loyalty scheme. This operational progress is now starting to be reflected in our financial performance, with full year like-for-like sales up 4.1% and EBITDA up by 11.2%. We ended the year particularly strongly with Q4 like-for-like sales up 4.9% - the strongest like-for-like quarter for almost four years.
“The More Card is firmly established as a customer favourite after a stunning year with linked sales growing from 47% just 18 months ago to 76% today. We have introduced a rolling programme of around 2,500 deeply discounted More Card prices and points are now awarded on every product. In the two-week Christmas period around 3.5 million Morrisons Fivers were redeemed by customers.
“I want to thank everyone at Morrisons for their commitment and energy every day and for playing their part in the significantly improved performance that we are reporting today. Supermarkets, Convenience, Online, Wholesale and Myton Food Group all contributed to the improving picture, helping us serve our customers better.”
Jo Goff, CFO, said:
“A year of broad based operational progress has helped to deliver a significantly strengthened Morrisons. We delivered a further £150m of progress on our working capital programme in the year, taking the total since the start of the programme to £450m, and have achieved £312m in our cost saving programme in the year.
“Our capital allocation framework remains to firstly invest in our estate and proposition, second to reduce debt and leverage and third to invest prudently in growth. We have a good track record in each of these, and debt is now down 40% from its peak.”
About Morrisons
Morrisons has a rich history that dates back to 1899 when William Morrison first opened an egg and butter stall in Bradford. 125 years on, customers continue to enjoy our great quality British food and our Market Street heritage is clear to see in our c. 500 stores where skilled colleagues such as our butchers, fishmongers, and bakers proudly make and serve customers fresh food every day.
As well as our supermarkets, we also have 1,600 Morrisons Daily convenience stores - around 600 of which are franchise stores - and an online delivery service where our customers can order their groceries from the comfort of their own home and have them delivered by us or one of our partners including Amazon, Deliveroo and Just Eat.
We also have our own manufacturing business - Myton Food Group - spread across 18 sites where we pack and process fresh meats and fish, savoury and sweet pies, fruit and veg, flower bouquets, bread and more. As a result, we’re proud to be British farming’s single biggest direct customer.
Our wholesale business serves customers across the UK and further afield through our extensive network of national and regional distribution depots.