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Morrisons report FY 2009 profit up 21% as Optimisation plan bears fruit
Wm Morrison Supermarkets beat forecasts with a 21% rise in annual profit driven by its focus on low prices and fresh foods and hiked its dividend despite an uncertain consumer outlook.
Britain's fourth-biggest grocer, said today it made profit before tax and one-off items of £767 million in the year ended January 31, from a turnover up 6% to £15.4 billion and in the process Morrison served 7% more customers each week.
There are more customers to serve though, as Morrison says there are still 7 million households in the UK not within a 15 minute drive of it's 425 stores. However during the year Morrison acquired 34 stores from The Co-op and opened 11 new stores, 2 of which are replacements. They expect to add a further 1.5million square feet of selling space in the three years to January 2013.
Sales of their own-label 'Value' range grew by 34% as consumers tightened their belts in a challenging economic environment, while distribution costs, measured on a cost per case basis, fell by 2% as the benefit from investment in improved systems such as voice picking in their warehouses and from the opening of their new South East Regional Distribution Centre at Sittingbourne in Kent, which serves 65 stores and cuts the distance travelled by 13.5million miles.
The full-year dividend was hiked 41% to 8.2 pence a share.
Sir Ian Gibson, Non-Executive Chairman, said:
"Morrisons had another good year. Once again our focus on fresh food and great value appealed to shoppers everywhere, and we have successfully grown sales and profits to record levels. We completed delivery of the Optimisation Plan first launched four years ago, and we are well on the way to cementing our position as the Food Specialist for Everyone. The opening of 43 new stores in the year accelerated our journey from National to Nationwide.
We expect the economic environment to remain challenging, disposable incomes to be under pressure and value to remain a high priority for consumers. The Board believes that Morrisons unique offer of high quality, fresh food at great value prices will continue to attract customers from our competitors and drive market share growth in the year ahead. For the longer term, we will continue to utilise our balance sheet strength to invest for growth, with new space, new manufacturing capability and new systems priorities in the year ahead.
I am pleased that Dalton Philips will take up his role as our new CEO on March 29th and I welcome him to Morrisons."
Britain's fourth-biggest grocer, said today it made profit before tax and one-off items of £767 million in the year ended January 31, from a turnover up 6% to £15.4 billion and in the process Morrison served 7% more customers each week.
There are more customers to serve though, as Morrison says there are still 7 million households in the UK not within a 15 minute drive of it's 425 stores. However during the year Morrison acquired 34 stores from The Co-op and opened 11 new stores, 2 of which are replacements. They expect to add a further 1.5million square feet of selling space in the three years to January 2013.
Sales of their own-label 'Value' range grew by 34% as consumers tightened their belts in a challenging economic environment, while distribution costs, measured on a cost per case basis, fell by 2% as the benefit from investment in improved systems such as voice picking in their warehouses and from the opening of their new South East Regional Distribution Centre at Sittingbourne in Kent, which serves 65 stores and cuts the distance travelled by 13.5million miles.
The full-year dividend was hiked 41% to 8.2 pence a share.
Sir Ian Gibson, Non-Executive Chairman, said:
"Morrisons had another good year. Once again our focus on fresh food and great value appealed to shoppers everywhere, and we have successfully grown sales and profits to record levels. We completed delivery of the Optimisation Plan first launched four years ago, and we are well on the way to cementing our position as the Food Specialist for Everyone. The opening of 43 new stores in the year accelerated our journey from National to Nationwide.
We expect the economic environment to remain challenging, disposable incomes to be under pressure and value to remain a high priority for consumers. The Board believes that Morrisons unique offer of high quality, fresh food at great value prices will continue to attract customers from our competitors and drive market share growth in the year ahead. For the longer term, we will continue to utilise our balance sheet strength to invest for growth, with new space, new manufacturing capability and new systems priorities in the year ahead.
I am pleased that Dalton Philips will take up his role as our new CEO on March 29th and I welcome him to Morrisons."
Thu, 11th Mar 2010