Morrison(Wm.)Supermarkets PLC Interim Management Statement (4196M)

TIDMMRW

RNS Number : 4196M

Morrison(Wm.)Supermarkets PLC

07 May 2015

Wm Morrison Supermarkets PLC

Q1 Trading Statement - 13 weeks to 3 May 2015

In the 13 weeks to 3 May, total sales(*) excluding fuel were down 1.1% (down 5.1% including fuel) and like-for-like(*) (LFL) sales were down 2.9% (6.6% including fuel). Online contributed 1.0% to LFL during the period.

David Potts joined the business as CEO on 16 March. Our priorities are to improve the customers' shopping trip and make our core supermarkets strong again. We are listening hard to customers and colleagues and, wherever possible, we are responding quickly.

As previously announced we closed more stores than we opened during the period, which led to a net reduction in selling space of over 50,000 square feet. In addition, we are taking steps to simplify our Head Office, and anticipate incurring associated one-off costs of GBP30m-GBP40m during 2015/16.

The financial position of the Group remains strong, with further good progress during the period. Net debt fell by around GBP150m, to GBP2.2bn compared to GBP2.3bn at the end of 2014/15.

David Potts, Chief Executive, said:

"My initial impressions from my first seven weeks are of a business eager to listen to customers and improve. I have been very pleased by the desire and support of colleagues, and by the genuine warmth and affection for Morrisons shared by both colleagues and customers.

"This is a business with many attributes, some unique. Our task is to use those advantages to improve the shopping trip for customers and create value."

Outlook

We anticipate that underlying profit before tax will be higher in the second half than the first.

A full assessment of the business is underway, and we will provide a more detailed update at the time of the Group's interim results in September. However, as outlined at the 2014/15 preliminary results, the focus continues to be to invest more for customers in order to build trading momentum.

*For supermarkets, online and convenience stores, reported exc.VAT and in accordance with IFRIC 13.

 
 Sales Performance (exc. VAT) 
------------------------------------------------------------- 
                                 2014/15              2015/16 
-------------------  ------------------------------  -------- 
                         Q1      Q2      Q3      Q4        Q1 
-------------------  ------  ------  ------  ------  -------- 
 Group LFL: 
-------------------  ------  ------  ------  ------  -------- 
 Sales exc-fuel(*)    -7.1%   -7.6%   -6.3%   -2.6%     -2.9% 
-------------------  ------  ------  ------  ------  -------- 
 Sales inc-fuel(*)    -8.2%   -7.5%   -8.0%   -5.1%     -6.6% 
-------------------  ------  ------  ------  ------  -------- 
 

(*) For supermarkets, online and convenience stores, reported exc. VAT and in accordance with IFRIC 13

 
 Summary of operational key performance indicators 
  (KPIs) 
-------------------------------------------------------------------------- 
                                            2014/15                2015/16 
----------------------------  ----------------------------------  -------- 
                                   Q1       Q2       Q3       Q4        Q1 
----------------------------  -------  -------  -------  -------  -------- 
 LFL Items per Basket 
  y-on-y change(*)              -5.9%    -3.2%    -2.4%    -0.1%     -0.1% 
----------------------------  -------  -------  -------  -------  -------- 
 LFL Number of Transactions 
  y-on-y change(*)              -3.6%    -5.0%    -3.3%    -1.9%     -3.2% 
----------------------------  -------  -------  -------  -------  -------- 
 Number of SKUs                23,600   22,400   22,150   21,950    21,650 
----------------------------  -------  -------  -------  -------  -------- 
 Items on Promotion 
  y-on-y change                 -5.0%   -12.9%   -13.6%    -8.1%     -4.3% 
----------------------------  -------  -------  -------  -------  -------- 
 Promotional Participation 
  y-on-y change (bps)             -30     -140     -240     -160      -210 
----------------------------  -------  -------  -------  -------  -------- 
 

* Excludes online and convenience

- ENDS-

Enquiries:

Wm Morrison Supermarkets plc

 
                             Group Finance 
 Trevor Strain                Director             0845 611 5000 
                             Investor Relations 
 Andrew Kasoulis              Director             07785 343515 
 
 Media Relations 
 
 Wm Morrison Supermarkets 
  plc                        Julian Bailey         0845 611 5362 
 Citigate Dewe 
  Rogerson                   Simon Rigby           020 7282 2847 
  Kevin Smith                                      020 7282 1054 
 

There will be an analyst conference call at 9 a.m. today, the details of which are as follows:

 
                                  [phone] 
 Dial in number:                   2666 
 Password:                        Morrisons 
 
 
 Replay facilities - available 
  for 7 days 
 
                                  [phone] 
 Dial in number:                   6902 
 Access Pin:                      6383590# 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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