Share Name Share Symbol Market Type Share ISIN Share Description
Morrison (wm) Supermarkets Plc LSE:MRW London Ordinary Share GB0006043169 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -6.05 -3.31% 176.85 176.55 176.75 184.45 175.90 182.45 13,046,612 16:35:16
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Food & Drug Retailers 17,735.0 320.0 10.3 17.1 4,231

Morrison(Wm.)Supermarkets PLC Trading Update

07/01/2020 7:00am

UK Regulatory (RNS & others)


Morrison (wm) Supermarkets (LSE:MRW)
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2 Months : From Dec 2019 to Feb 2020

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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# 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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January 07, 2020 02:00 ET (07:00 GMT)

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