Profits surge for grocer Morrisons

MORRISONS has reported a surge in full-year profits as the supermarket cements its turnaround and reaps the rewards of investment into cutting prices.

The grocer reported a 49.8 per cent rise in pre-tax profits to £325m and notched up likefor-like sales growth of 1.7 per cent in the year to January 29 and 2.5 per cent in the fourth quarter. Revenue came in at £16.3bn, up 1.2 per cent, as the results solidified the chain’s return to form under chief executive David Potts.

He said: “Our full year of like-for-like sales and profit growth was powered by listening to customers, and shows what our hard-working team of food makers and shopkeepers can do. “But, it’s only one year. “Our turnaround has just started, and we have more plans and important work ahead. If we keep improving the customer shopping trip, I am confident that Morrisons will continue to grow.”

On an underlying basis, profits rose 11.6 per cent to £337m, the first time in five years they have moved in an upward trajectory.

The company said its Price Crunch initiative has seen more customers come through its doors.

Morrisons, which secured a deal to sell groceries through Amazon under Mr Potts, added the internet titan’s lockers are now in more than 400 of its stores. In addition, following a successful trial, a similar roll-out is also planned with Doddle.

However, it sounded a note of caution on the year ahead, warning of the “impact on imported food prices if sterling stays at lower levels”.

Food prices are beginning to rise as producers begin to pass on soaring import costs triggered by Brexit-hit pound.