Morrison(Wm.)Supermarkets PLC Trading Update (9126Y)
07 Gennaio 2020 - 8:00AM
UK Regulatory
TIDMMRW
RNS Number : 9126Y
Morrison(Wm.)Supermarkets PLC
07 January 2020
News Release
Release date: 7 January 2020
Trading update for the 22 weeks to 5 January
For the first 22 weeks of H2 to 5 January, Group
like-for-like(*) (LFL) sales excluding fuel were down 1.7%,
comprising contributions from retail of (1.7)% and wholesale of
0.0%. Group LFL including fuel was down 2.8%. Total sales(*) were
down 1.8% excluding fuel (down 2.9% including fuel).
For Q3 (the period 5 August to 3 November), LFL excluding fuel
was down 1.2%, comprising contributions from retail of (1.1)% and
wholesale of (0.1)%. Group LFL including fuel was down 2.5%. Total
sales were down 1.3% excluding fuel (down 2.6% including fuel).
Throughout the period, trading conditions remained challenging
and the customer uncertainty of the last year was sustained. We
kept focussed on our priorities and our customers, and continued to
invest in the Morrisons price list while managing costs well. Our
basket of key Christmas items was once again very competitive, with
most prices the same as or lower than last year. In fuel, our
business was affected by a highly promotional market.
In wholesale we were pleased to grow sales with most of our
customers, but overall LFL growth was impacted by the lower total
sales at McColl's, as previously reported by McColl's for the
period up to 24 November. Sales at the first ten conversions from
McColl's to Morrisons Daily convenience stores are strong, and
together we plan to extend the trial to another c.20 stores during
January and February to further tailor and test the proposition as
we begin to transition McColl's remaining ex-Co-op stores to
Morrisons wholesale supply.
Following an extensive tender process, we recently sold our
Camden store and eight acre surrounding site to Berkeley Group for
a total consideration of GBP120m. Berkeley will pay GBP85m in
stages over the years of the project, and will build a new
Morrisons supermarket and convenience store on the site at a cost
to Berkeley of around GBP35m.
Also during the period, we opened four new stores (including two
replacements), closed four underperforming stores, and launched
another 25 Fresh Look stores bringing the total to 44 this year.
The new stores include Canning Town, which is our first store with
a Market Kitchen food-to-go offer, and Bolsover, our first smaller,
community store format. At Bolsover, we also passed the milestone
of 1,000 new, local products, which we have sourced from 27 local
food maker events across Britain in just the last three years.
Morrisons quality was once again widely recognised. We won Best
Fizz for our Best Prosecco in the Good Housekeeping Christmas Taste
Test; our Best All Butter Mince Pies, Best Classic Panettone and
vegan Best Layered Tart all won their categories at the BBC Good
Food Christmas Taste Test; and we won 97 awards at the
International Wine Challenge 2020. In addition, our Free From brand
continued its multi-year growth, with sales up another 34% over
Christmas and New Year.
David Potts, Chief Executive, said:
"It was encouraging that during an unusually challenging period
for sales, our execution was strong and our profitability robust,
demonstrating the broad-based progress we have made during the
turnaround. This was again down to the hard work of Morrisons
exceptional team of food makers and shopkeepers. As always, we will
take some learnings into the new year, and look forward to 2020
with a strong plan and solid foundations on which to continue to
grow."
Outlook:
We managed costs well throughout the period, offsetting some of
the impact on LFL sales of the challenging trading conditions and
continued uncertainty amongst customers. With four weeks of the
year still to go, we expect 2019/20 profit before tax and
exceptionals to be within the current range of analysts'
forecasts.
* Reported ex-VAT and in accordance with IFRS 15
Figure 1 - LFL sales performance (ex-VAT)
2018/19 2019/20
9 weeks
to 6 22 weeks
Q3 Jan Q4 Q1 Q2 Q3 to 5 Jan
----- -------- ----- ----- ------- ------- ----------
Retail contribution
to LFL 1.3% 0.6% 0.6% 0.2% (2.4)% (1.1)% (1.7)%
----- -------- ----- ----- ------- ------- ----------
Wholesale contribution
to LFL 4.3% 3.0% 3.2% 2.1% 0.5% (0.1)% 0.0%
----- -------- ----- ----- ------- ------- ----------
Group LFL ex-fuel 5.6% 3.6% 3.8% 2.3% (1.9)% (1.2)% (1.7)%
----- -------- ----- ----- ------- ------- ----------
Group LFL inc-fuel 6.0% 3.4% 3.0% 2.7% (2.2)% (2.5)% (2.8)%
----- -------- ----- ----- ------- ------- ----------
Reported in accordance with IFRS 15
Notes:
This announcement includes inside information.
- ENDS -
Enquiries:
Wm Morrison Supermarkets plc
0778 534
Andrew Kasoulis - Investor Relations Director 3515
Media Relations
Wm Morrison Supermarkets 0796 906
plc: Julian Bailey 1092
0203 926
Citigate Dewe Rogerson: Simon Rigby 8522
0203 926
Nick Hayns 8503
There will be an analyst conference call at 8.15 a.m. today, the
details of which are as follows:
Dial-in number: +44 (0) 33 3300 0804
Access Pin: 82988831#
Password: Morrisons
Replay facility available for 7 days:
Replay dial-in number: +44 (0) 33 3300 0819
Access Pin: 301305309#
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END
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