Morrisons Plc – Interim Results

Financial summary

·    Q2 LFL sales ex-fuel/ex-VAT up 2.0%, the third consecutive positive quarter

·    H1 LFL sales ex-fuel/ex-VAT up 1.4%

·    Total turnover almost flat, down 0.4% to £8.03bn (2015/16: £8.06bn)

·    UPBT up 11% to £157m (2015/16 UPBT before restructuring costs: £141m), or up 34% including last year's restructuring costs (2015/16 UPBT: £117m)

·    Underlying EPS up 35% to 5.04p (2015/16: 3.73p)

·    Reported PBT up 13.5% to £143m (2015/16: £126m)

·    Free cash flow of £558m (2015/16: £479m)

·    Operating working capital improvement of £318m, two-and-a-half-year total £872m

·    Debt facilities redeemed: $250m USPP and £152m of sterling/euro bonds

·    Net debt reduced by £477m to £1,269m, below our year-end target

·    Interim dividend up 5.3% to 1.58p (2015/16: 1.50p)

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