TIDM45GD
RNS Number : 8692R
Lewis(John) PLC
11 March 2021
John Lewis plc announces the unaudited results for the 53 weeks
ended 30 January 2021 for John Lewis Partnership plc.
John Lewis Partnership plc is the ultimate holding company of
John Lewis plc.
Thursday 11 March 2021
JOHN LEWIS PARTNERSHIP
UNAUDITED RESULTS FOR 53 WEEKSED 30 JANUARY 2021
2020/21 is a 53 week year and is reported on that basis. 2020/21
results have benefitted from an additional week's trade compared to
2019/20. The impact on Profit before PB, tax and exceptional items
is small.
A glossary of financial and non-financial terms is included at
the end of this document.
SUMMARY OF JOHN LEWIS PARTNERSHIP UNAUDITED FINANCIAL
RESULTS
Dear Partner,
The past year has been one of the most challenging in the
Partnership's history. The worst of times bring out the best in
people and I could not be more proud of the commitment and
dedication of Partners, in the most unimaginably difficult
circumstances. We have come through the pandemic stronger and that
is because we are a Partnership.
It's a privilege to be a Partner in the UK's largest
employee-owned business. Employee ownership means we pull together
in the good times - and in the tougher moments. You have shown
extraordinary agility, creativity and adaptability as the
Partnership has worked so hard to keep our customers fed and cared
for through three lockdowns.
Your safety and the safety of our customers has been paramount
throughout the pandemic and remains so. We were one of the first
businesses to introduce social distancing - ahead of it becoming
law - and an early adopter of rapid testing for Partners at scale.
We are investing more in mental health support for Partners,
conscious of the toll the last year has taken.
As a Partnership, it is even more important to us that in the
tough times we reach out to those in our communities with the
greatest needs:
-- Our Give A Little Love Christmas campaign raised GBP3m for
FareShare and Home-Start who help families at risk of food poverty
and parents in need respectively; with a further GBP2m now
pledged.
-- We have set up a new programme with FareShare - Farm to
Family - becoming the first UK supermarket to take surplus food
straight from our largest suppliers and farms to the plates of
those in need.
-- We donated nearly 5,000 items of warm clothing to Home-Start to distribute to families.
-- We delivered almost 2,000 care packages to over 500 NHS
Hospitals and Mental Health Trusts, and another 110,000 care
packages and gifts to NHS staff.
-- We have given over at least a quarter of supermarket home
deliveries to vulnerable customers with the figure reaching 35% in
recent weeks.
-- We have repurposed space at our head office in Bracknell into
a vaccination centre run by the NHS and over 10,000 people have
been vaccinated so far.
We were pleased to be named Supermarket of the Year by Which? in
recognition of our response to Covid-19; and John Lewis was named
the number one brand in the UK for the fourth consecutive year in
YouGov's Brand Rankings survey.
The climate emergency presents an even greater challenge than
the pandemic, and we believe now is the time to accelerate efforts
to improve sustainability. We are not perfect but we are trying
hard. We became a signatory of HRH The Prince of Wales's Terra
Carta earth charter in February. In the same month, Waitrose topped
Greenpeace's annual league table as the best supermarket in
tackling single use plastics, thanks in part to our Unpacked
initiative. We continue to champion animal welfare standards,
becoming the first retailer in the world to measure the emotional
wellbeing of farm animals using a specialist mobile app.
OUR FINANCIAL PERFORMANCE ([1])
Profitability
GBPm 2020/21 2019/20 Change
-------- --------
(Loss)/profit before tax (517) 146 (663)
Profit before PB, tax and exceptional
items ([2]) 131 70 61
---------------------------------------- -------- -------- -------
In a difficult year, the Partnership recorded a Loss before tax
of GBP(517)m, compared to a Profit before tax of GBP146m in the
previous year. This is the result of substantial exceptional costs
of GBP(648)m, mainly the write down in the value of John Lewis
shops owing to the pronounced shift to online, as well as
restructuring and redundancy costs from store closures and changes
to our head office. John Lewis shops are now held on our balance
sheet at almost half the value they were before this year's and
last year's write downs. Before the pandemic we judged that GBP6 in
every GBP10 spent online with John Lewis was driven by our shops.
The ratio has fallen to GBP3 in every GBP10.
Our Profit before exceptionals was GBP131m. While this was up
GBP61m on the previous year, the Partnership would have made a loss
before exceptionals if it weren't for crisis-related support from
the Government. We were helped by support from the Government of
GBP190m, which was made up of business rates relief and furlough
support (the latter claimed only to July 2020). Government funding
has been used for the purpose it was designed for - to protect the
business - and was critical to cover the direct operational costs
relating to Covid and the substantial hit to trading operating
profit. The business rates relief has helped to keep us running and
avoid more severe restructuring of the Partnership, which would
have put more jobs at risk at a time when the high street is
already under pressure. We are not out of the crisis yet and the
economic environment remains extremely uncertain. Therefore, our
current intention is to accept the business rates relief made
available from April to June, but we will keep this under
review.
Trading operating profit was significantly challenged as the
improvement seen in Waitrose, in part helped by the closure of the
hospitality industry, was insufficient to cover the substantial
decline in John Lewis as "non-essential" physical retailing closed
temporarily. However, we improved our cost base with pension costs
reducing by around GBP55m following the closure of the
Partnership's defined benefit pension scheme in April 2020. There
was also an almost GBP25m reduction in the depreciation of John
Lewis Stores - i.e. less wear and tear - owing to their
significantly reduced value in our accounts through the exceptional
write down.
GBPm 2020/21 2019/20 Change
-------- --------
Trading operating profit ([3])
Waitrose 1,145 1,063 82
John Lewis 554 734 (180)
1,699 1,797 (98)
Centrally managed costs (900) (1,026) 126
Depreciation and amortisation (510) (539) 29
Net finance costs (158) (162) 4
-------- -------- -------
Profit before PB, tax and exceptional
items 131 70 61
Exceptional items (648) 107 (755)
Partnership Bonus - (31) 31
-------- -------- -------
(Loss)/profit before tax (517) 146 (663)
---------------------------------------- -------- -------- -------
We entered this year with our financial performance already
challenged - profits and Partner bonus having fallen for the past
three years. We are having to take very difficult decisions to
return the business to a path of sufficient profit of GBP400m by
2025/26. Last year we closed eight John Lewis stores and seven
Waitrose stores that were loss making, and we are in the process of
reducing the cost of our head office by 20%. We have seen limited
impact from Brexit so far operationally owing to our advance
preparations and the Brexit trade deal. The one area of the
business that is temporarily disrupted is deliveries to Northern
Ireland and we expect to resume these before the summer.
With a challenging external environment and difficult decisions
as a Partnership, I could not be more proud of Partners. You have
responded with exceptional agility - providing new services to
customers, whose satisfaction with both brands has risen year on
year.
Laying the foundations for growth
Our rapid response to the crisis has laid the foundations of our
growth:
-- The benefit of being one Partnership with two brands is that
more than 4,500 Partners from John Lewis were redeployed to
Waitrose during the various lockdowns helping to keep the nation
fed, and avoiding GBP15m in additional costs.
-- Waitrose.com has grown fourfold since February 2020, now
taking around 240,000 orders a week, and stands as a GBP1bn sales
business. This expansion was supported by the opening of a new
customer fulfilment centre in Enfield last May, and the extension
of online picking and delivery, which is now available in 260 of
331 Waitrose shops. We also trebled our 'Rapid' delivery service
within the first month of lockdown. This has all made Waitrose.com
the fastest growing online retailer, growing at more than double
the market rate according to Kantar.
-- Johnlewis.com has grown significantly, up 73%, and this year
was three quarters of the brand's sales, from 40% before the
crisis.
-- Services - previously only available in-store like nursery,
home interiors advice, wine tasting and cookery courses - went
online, with Partners supporting customers in a personal way via
Zoom and apps. A Guinness World Record was broken with the largest
ever virtual beauty event masterclass with Charlotte Tilbury.
-- A trial partnership with Deliveroo has attracted younger new
customers and is available through 40 Waitrose shops.
-- Click & Collect is now available at over 900 locations,
nearly 400 of which were added in nine weeks, up from 458 last
year. Purchases from Boden, Sweaty Betty and Nespresso can now be
picked up through our network.
-- 30 new fashion and beauty brands have been launched in store
and online, with a further 50 being introduced, many of them
independent and British.
-- John Lewis achieved its highest ever net promoter score of
70, up 4 points year-on-year (ie many more customers recommending
the brand than not), and Waitrose's customer satisfaction score
rose 5.5 percentage points to 69%.
Thanking Partners
In recognition of Partners' hard work this past year, we
introduced free food on site and raised the Waitrose shopping
discount to 25% during the three lockdowns. We also made thank you
payments to all non-management Partners and first level managers
who worked in April and May 2020. The total cost was around GBP55m
[4] .
We wish we were in a position to pay a bonus and it has been a
very difficult decision not to. The Partnership Board believed that
to do so would have held back our ability to protect the business
in very difficult times and to lay the foundations to return to
sustainable profit.
We are committed to restarting bonus as soon as our profits
(before exceptionals) reach GBP150m on a sustainable basis and our
debt ratio is below 4 times, and to paying the voluntary real
living wage [5] when profits rise to GBP200m.
THE YEAR AHEAD
We now have a five-year Partnership Plan. The first priority is
to reduce our costs and reinvest the proceeds in improved customer
service to ensure that John Lewis and Waitrose remain the go-to
brands for quality, value and sustainability, with greater ease and
convenience. With retail margins declining and the Partnership
wishing to return more benefit to Partners, customers and
communities, we are aiming that by 2030, 40% of our profits will
come from areas outside retail, namely financial services, housing
and outdoor living.
The outlook is uniquely uncertain as the country charts its exit
from lockdown, with non-essential retail in England due to open on
12 April at the earliest; and the timetable varying in Scotland and
Wales. No one has a crystal ball to predict the strength and pace
of the recovery - or the future course of the virus. Our priority
is to make sure that the Partnership is well placed to serve our
customers, however they want to shop with us. We are expecting
working from home to be at higher levels than before the crisis as
more people work a 'hybrid' of home and office.
Many customers will have accumulated savings over the past year,
having been less able to spend on holidays and going out ([6]) .
This pent up demand might be spent shopping or on the experiences
that they have been deprived of in the past year. Equally, with
unemployment and inflation both forecast to rise ([7]) our
customers may be more hesitant about spending and more cost
conscious.
Funding the Plan
We managed cash tightly through the year and intentionally
slowed investment when the crisis hit to preserve cash. We also
obtained new medium term bank loans of GBP150m, and raised GBP136m
from the sale and leaseback of 11 Waitrose shops.
Consequently, our liquidity as of January 2021 was abnormally
high with GBP1.5bn cash plus bank facilities of GBP500m. The cash
balances will be required to help meet our obligations - we carry
GBP2.1bn of total net debts (including pensions and leases), with
GBP575m of borrowings due to be repaid in the next 4 years. They
will also provide us with a buffer to withstand material volatility
in trading. Managing cash prudently is particularly important for
the Partnership as we cannot raise money from equity capital
markets by design of our structure.
We are targeting a GBP300m a year cost reduction by 2022/23. Our
cash position and focus on cost will allow us to fund our critical
turnaround - to secure and grow the Partnership for the benefit of
current and future generation of customers and Partners. We expect
our liquidity levels to normalise over the medium term as we invest
in our plan and repay borrowings and we will continue to manage
cash tightly.
Growth plans
We plan to invest GBP800m in 2021/22 to support our turnaround,
approximately 40% higher than recent years. Given this raised level
of investment, we expect our financial results - including
liquidity, debt ratio, and profit before exceptionals - to worsen
in 2021/22 and then improve in later years.
Investments include:
-- digital investment across both brands, at a significantly higher level than recent years;
-- improvements in our store estate;
-- updating of major category propositions such as Home, and
refresh of financial services products such as home insurance;
-- new capacity at our John Lewis Magna Park distribution site
to handle a higher volume of sales during Christmas;
-- restructuring to reduce costs.
We will provide an update later in the year as to how we are
ensuring best value for John Lewis customers as we finalise our
review of Never Knowingly Undersold, informed by intensive customer
research.
Future of John Lewis stores
As spending shifts online we want to ensure our stores reflect
how customers want to shop - 'right space, right place'.
Our shops will always be important and we are proud of our
presence on the high street across the country. They provide a
sensory experience that online cannot, supported by the expert
advice of Partners. And both brands will remain a blend of stores
and online.
We've undertaken substantial research into how shopping habits
vary in different parts of the country and between online and
stores. Customers tell us they want to shop John Lewis closer to
home in more convenient locations and they want our stores to be
more enticing. We will reshape our store estate over the five years
of the Partnership Plan towards:
-- Destination stores: showcasing our inspiring products -
displaying great design with more space given over to experiences
and services that cannot be found anywhere else.
-- Smaller service stores: new formats of smaller, more local
shops with the very best of John Lewis.
-- Bringing our brands closer together: we are trialling the
introduction of John Lewis shopping areas in Waitrose stores in
Godalming, Horley, Wallingford, Lincoln and Lymington; the early
signs are positive. If successful, we will roll out to a
significant number of our 331 Waitrose shops. Our plan is for all
the general merchandise in Waitrose shops to be sourced from John
Lewis.
-- Even greater convenience for customers: improved Click &
Collect service in Waitrose stores and more local collection points
through third parties like the Co-op.
All our John Lewis stores need to be exciting places to shop,
more reflective of the tastes and interests of local customers.
This will require investment and we are working closely with
landlords and local authorities. We are keen to play our part in
the revitalisation of the high street.
Hard as it is, there is no getting away from the fact that some
areas can no longer profitably sustain a John Lewis store.
Regrettably, we do not expect to reopen all our John Lewis shops at
the end of lockdown, which will also have implications for our
supply chain. We are currently in discussions with landlords and
final decisions are expected by the end of March.
Closing a store is one of the hardest decisions we can make as a
Partnership. We are acutely sensitive to the impact on our
Partners, customers and communities, particularly at a time when
retail and our high streets are undergoing major structural change.
We will do everything we can to lessen the impact and will continue
to provide community funds to support local areas.
A national effort of business, local and national government,
and community will be needed to address the challenges facing the
high street, communities and jobless youngsters from the sheer
speed at which Covid is altering the structure of the economy.
We are going through the greatest scale of change in the
Partnership's 156-year history. As employee-owners, we share the
responsibility of securing the Partnership for future generations
of customers and Partners. Difficult decisions taken now will
hopefully set the course for those next generations.
I know I am asking so much of Partners. Retail is changing fast
around us. And the Partnership is adapting just as fast. What won't
change are the principles and values in which the Partnership is
rooted. We have withstood our toughest test and emerged stronger.
The strength of the Partnership has seen us successfully navigate
the pandemic and will see us to a successful future.
Sharon White
Partner & Chairman
..........................................
The rest of this note provides more detail on our financial
position over the last year and the impact of the pandemic, if you
would like to read on. It is also intended as a fuller brief for
those outside the Partnership who want further information about
our results.
JOHN LEWIS PARTNERSHIP UNAUDITED FINANCIAL RESULTS - DETAIL
MARKET CONTEXT
Retail in the UK has been undergoing significant structural
change for a number of years. There has been pressure on sales and
margins from excess physical space, declining footfall, increased
online competition and changes in shopping habits - plus
operational costs running ahead of inflation. The Partnership
entered 2020/21 in an already challenged position, with profits
having declined over the previous three years.
Click or paste the following link into your web browser to view
the graph titled 'Profit before Partnership Bonus, tax and
exceptionals (GBPm)'. Refer to page 7 for this graph.
http://www.rns-pdf.londonstockexchange.com/rns/8692R_1-2021-3-10.pdf
Note: The chart shows our Profit before Partnership Bonus, tax
and exceptionals since 2016/17, with 2019/20 shown twice as that is
the year we adopted IFRS 16 (lease accounting standard) which
reduced our profits that year by GBP53m. The period from 2016/17 to
2019/20 is shown before the adoption of IFRS 16, and 2019/20 and
2020/21 are shown after the adoption of IFRS 16.
2020/21 FINANCIAL PERFORMANCE ([8])
PROFIT
GBPm 2020/21 2019/20 Change
-------- --------
(Loss)/profit before tax (517) 146 (663)
Exceptional items (648) 107 (755)
Profit before PB, tax and exceptional
items ([9]) 131 70 61
---------------------------------------- -------- -------- -------
SALES
GBPm 2020/21 2019/20 Change %
-------- --------
Total trading sales ([10]) 12,317 11,747 5%
Revenue 10,772 10,151 6%
----------------------------- -------- -------- ---------
CASH FLOW AND FINANCIAL KPIS [11]
2020/21 2019/20 Change
----------- ----------
Adjusted cash flow (GBPm) 624 621 0%
Cash generated from operations
before PB (GBPm) 832 713 17%
Debt ratio 3.4 times 3.9 times (0.5) times
ROIC % 6.7% 5.8% 0.9ppt
Profit per average FTE (GBP) 3,500 3,500 nil
--------------------------------- ----------- ---------- ------------
Profitability
Our loss before tax, which is after exceptionals, was GBP(517)m.
This compares to a profit before tax of GBP146m the previous year.
Exceptional costs totalled GBP(648)m (2019/20: exceptional income
of GBP107m), principally relating to:
-- Restructuring and redundancy costs from store closures and
our head office transformation programmes.
-- The write down in value of John Lewis stores. We first
reported this at the half year and there has been no significant
change since then. Given the pronounced shift to digital, we
reassessed how much shops contribute to whether our customers buy
online with us or not. Before the pandemic we believed that shops
contributed around GBP6 of every GBP10 spent online but we now
think that figure is GBP3. John Lewis shops are now held on our
balance sheet at almost half the value they were before the write
downs recognised in 2019/20 and 2020/21.
Exceptionals (GBPm) 2020/21 2019/20
-------
Strategic restructuring and redundancy programmes (190) (64)
Shop impairments - Waitrose 10 13
Shop impairments - John Lewis (468) (110)
Defined benefit pension closure - 249
Other prior year exceptionals - 19
------- -------
(648) 107
-------------------------------------------------- ------- -------
Before exceptionals, the Partnership made a profit of GBP131m in
2020/21, which was up GBP61m on the previous year. Without GBP190m
of Government support, we would have made a loss before
exceptionals. Government support covered the direct operational
costs of the pandemic and the substantial hit to trading operating
profit, with the impact of the closure of our department stores,
and the weaker margins in John Lewis only partly offset by
Johnlewis.com sales growth and the improvement in Waitrose.
Furthermore, around GBP55m of the year-on-year profit improvement
was the result of lower pension costs following the closure of our
defined benefit pension scheme in April 2020; around GBP25m was
from lower depreciation costs because of the write down of the
value of John Lewis shops.
Click or paste the following link into your web browser to view
the graph titled 'Year on year profit bridge (GBPm)'. Refer to page
9 for this graph.
http://www.rns-pdf.londonstockexchange.com/rns/8692R_1-2021-3-10.pdf
Note: The chart shows a bridge of Profit before Partnership
Bonus, tax and exceptionals from last year's GBP70m to this year's
GBP131m. The trading operating profit decline of GBP(140)m reflects
the 52 week year-on-year decline of GBP(128)m adjusted for the
element of Covid direct operational costs (around GBP25m) and lower
pension costs (around GBP37m) that were reported in trading
operating profit but are shown within separate items in the
bridge.
At the half year, we were expecting to make a small loss or
profit for the full year. In the end we had a stronger than feared
second half, especially in John Lewis, where we traded better
through the national lockdowns and peak. The strength of online
compensated for the loss of store sales more than we had expected,
and sales over the peak trading period were robust, even though
many shops were closed for a number of weeks. The brand had its
biggest ever Black Friday and Christmas for online sales.
Technology was the biggest growth area with Apple AirPods and the
iPad 8 top sellers. Moreover, when shops were open, they were
busier than expected.
In Waitrose, sales were also stronger than forecast, benefiting
from: families continuing their festive celebrations (even though
they couldn't meet in large groupings as they had hoped), the
closure of hospitality and sustained growth in online.
Like-for-like sales through peak were up 9% with online grocery up
182%.
As a result of the new Partnership organisational structure that
was adopted on 3 February 2020, which created common functions that
allow more costs and resources to be managed centrally, 2019/20 was
the last year that we reported operating profit separately for
Waitrose and John Lewis.
We now report trading operating profit for each brand, which
excludes costs that are managed for the Partnership as a whole
(such as property, IT and head office costs, investment spend and
depreciation).
The table below sets out the financial headlines for our brands.
The additional week in 2020/21, which is a 53 week year, is
estimated to inflate the reported trading operating profit by
around GBP20m in Waitrose and around GBP10m in John Lewis.
Waitrose John Lewis
------------------------
Change Change
2020/21 2019/20 % 2020/21 2019/20 %
------------------------ ------- ------- ------ ------- -------
Total trading sales
([12]) (GBPm) 7,595 6,917 10% 4,722 4,830 (2)%
LFL sales growth ([13])
(%) 10% 0%
Revenue (GBPm) 7,044 6,373 11% 3,728 3,778 (1)%
Trading operating
profit (GBPm) 1,145 1,063 8% 554 734 (25)%
Trading operating
profit (%) 15.1% 15.4% 11.7% 15.2%
------------------------- ------- ------- ------ ------- ------- ------
Liquidity
We have managed cash tightly through the year, given both the
uncertainty and volatility of trade and our inability to raise
funds from issuing shares because we are employee-owned. In
addition, we obtained new medium term bank loans of GBP150m and
raised GBP136m from the sale and leaseback of 11 Waitrose
shops.
We also deliberately slowed investment in the early months of
2020 to preserve cash, and our ability to spend was anyway limited
by the practical impact of the pandemic. Consequently, our
liquidity as of January 2021 was unusually high with GBP1.5bn cash
plus bank facilities of GBP500m. This cash position is required to
help meet our obligations - we carry GBP2.1bn of total net debts
(including pension and leases), with GBP575m of borrowings due to
be repaid in the next 4 years ([14]) . It also ensures that there
is adequate funding available to withstand material volatility in
trading and to allow us to invest in turning around the
business.
Click or paste the following link into your web browser to view
the graph titled 'Liquidity - GBPm'. Refer to page 10 for this
graph.
http://www.rns-pdf.londonstockexchange.com/rns/8692R_1-2021-3-10.pdf
Pensions
Our accounting pension deficit reflects the gap between the
market value of pension assets held by our defined benefit scheme
and our pension liabilities - an estimate of the expected pension
payments to be made to current and future pensioners in today's
money. The deficit is highly sensitive to changes in financial and
demographic assumptions, particularly changes in interest rates, as
well as to returns on pension investments.
As at January 2021, the accounting pension deficit (net of
deferred tax) ([15]) was GBP572m. This is GBP209m higher than the
year before, mainly due to lower interest rates and the
Government's decision to replace RPI (retail price index) with CPIH
(consumer price index including owner occupiers' housing costs)
from 2030 with only a limited transition, which together mean we
are likely to have to put more money aside to cover future pension
payments.
Click or paste the following link into your web browser to view
the graph titled 'IAS 19 pension deficit (net of deferred tax) -
GBPm'. Refer to page 11 for this graph.
http://www.rns-pdf.londonstockexchange.com/rns/8692R_1-2021-3-10.pdf
While the accounting pension deficit is shown on the
Partnership's balance sheet, it does not drive the cash
contributions that the Partnership makes to the pension scheme.
That is decided every three years as part of the triennial
actuarial valuation. The last triennial valuation as at 31 March
2019 was concluded in May 2020 and showed a deficit of GBP58m. The
Partnership has agreed to make annual cash contributions of GBP10m
until 2026 to eliminate the deficit.
Debt ratio
The strength of our cash position has improved our debt ratio -
how much we owe as a proportion of the cash we generate each year -
to 3.4 times from 3.9 times last year. We expect this to reverse in
2021/22 as we invest in our turnaround before returning to an
improving trajectory the following year. In the medium term we
continue to target a debt ratio of around three times.
Click or paste the following link into your web browser to view
the graph titled 'Debt ratio'. Refer to page 11 for this graph.
http://www.rns-pdf.londonstockexchange.com/rns/8692R_1-2021-3-10.pdf
IMPACT OF THE PANDEMIC
Online shift
The pandemic has greatly accelerated the shift to online sales.
Trends that might in normal times have taken five years to
transpire have happened in five months. Household names have been
lost to the high street and are now online only.
John Lewis began the crisis as a 60:40 bricks and mortar: online
retailer. That ratio has more than reversed. The crisis has also
led significantly higher numbers of people to get comfortable
buying food online - out of necessity. At the start of the
financial year, online accounted for 5% of Waitrose sales; it is
now 20% with the average across the year being 14%.
While there is clearly uncertainty over the extent to which
these changes will endure, we are expecting much of the shift
online to be permanent and are adapting the business
accordingly.
Click or paste the following link into your web browser to view
the graph titled 'John Lewis sales GBPm - channel mix'. Refer to
page 12 for this graph.
http://www.rns-pdf.londonstockexchange.com/rns/8692R_1-2021-3-10.pdf
Note: The chart shows John Lewis sales and channel mix since
2017/18. The proportion of online sales has increased to 75% in
2020/21, which includes national lockdowns that resulted in John
Lewis shops being closed for at least 20 weeks of the year.
Click or paste the following link into your web browser to view
the graph titled 'Waitrose sales GBPm - channel mix'. Refer to page
12 for this graph.
http://www.rns-pdf.londonstockexchange.com/rns/8692R_1-2021-3-10.pdf
Note: The chart shows Waitrose sales and channel mix since
2017/18. It does not include sales to Ocado.
John Lewis stores were closed for at least 20 weeks out of 53,
as a result of the national lockdowns. In the first, Click &
Collect was permitted in Waitrose but not in John Lewis stores. In
the second and third lockdowns Click & Collect was allowed in
both locations. In January 2021, we stopped Click & Collect in
John Lewis stores to prevent unnecessary journeys, for the safety
of our customers as new variants of Covid were identified.
John Lewis sales were down (4)% year on year, after adjusting
for the additional week in 2020/21: up 73% online and down (59)% in
store. In the first half of the year sales were down (10)% as the
loss of shop sales was not offset by the strong online growth.
However, in the second half of the year online growth more than
compensated for the closure of stores, with sales ahead of the year
before by 1%.
Click or paste the following link into your web browser to view
the graph titled 'John Lewis weekly sales (GBPm) - channel mix'.
Refer to page 13 for this graph.
http://www.rns-pdf.londonstockexchange.com/rns/8692R_1-2021-3-10.pdf
Note: The chart shows the channel mix of John Lewis sales on a
weekly basis.
When shops were allowed to reopen last summer, footfall held up
better in retail parks - easily accessible by car - than on the
high street. This was similar for our standalone stores, which are
not on the high street. Shopping centre and high street branches
saw the steepest decline in numbers.
Click or paste the following link into your web browser to view
the graph titled 'John Lewis shop footfall decline vs last year
(since reopening)'. Refer to page 13 for this graph.
http://www.rns-pdf.londonstockexchange.com/rns/8692R_1-2021-3-10.pdf
Note: Shows the year-on-year % decline in footfall at John Lewis
shops for the periods they have been open since reopening after the
first lockdown.
In Waitrose, like-for-like sales were up 10% on the year. The
end of the Ocado relationship on 1 September 2020 and the start of
the trial with Deliveroo on the same day provided a boost to sales.
Our trial with Deliveroo - through which customers can order over
650 products, delivered in as little as 30 minutes - has helped to
attract younger shoppers, many of whom are new to Waitrose. We
trebled our 'Waitrose Rapid' delivery service within the first
month of lockdown, offering up to 25 products for delivery within
two hours and 7,000 delivery slots per week.
Click or paste the following link into your web browser to view
the graph titled 'Waitrose weekly sales (GBPm) - channel mix'.
Refer to page 14 for this graph.
http://www.rns-pdf.londonstockexchange.com/rns/8692R_1-2021-3-10.pdf
Note: The chart shows the channel mix of Waitrose sales on a
weekly basis, with online mix increasing from 5% pre-pandemic to
20% at the end of the year.
Waitrose.com has grown rapidly in the year, increasing to more
than 240,000 orders a week, up from around 60,000 a year ago. With
higher costs to fulfil, this has led to a dilution of profit
margins in Waitrose, in spite of our largely store picking model
which is more flexible and cost efficient than warehouses.
Click or paste the following link into your web browser to view
the graph titled 'Waitrose.com average weekly online orders
('000s)'. Refer to page 14 for this graph.
http://www.rns-pdf.londonstockexchange.com/rns/8692R_1-2021-3-10.pdf
Note: The chart shows Waitrose.com average and peak weekly
online orders by period in 2020/21 - this does not include
Deliveroo orders. Across the financial year our periods follow a
4-4-5 weekly reporting cycle, and in a 53 week year, period 12
includes 6 weeks. Using a 52 week rolling basis, the average weekly
online orders is based on a comparable number of weeks for each
period this year and last year.
Category and fulfilment shift
In John Lewis, overall margins decreased because of the change
in sales mix, as profit margins on the categories and products that
sold well - especially technology, which was the biggest winner -
were lower than those that sold less well. What people bought in
John Lewis changed compared to a normal year.
Click or paste the following link into your web browser to view
the graph titled 'John Lewis sales - category mix %'. Refer to page
15 for this graph.
http://www.rns-pdf.londonstockexchange.com/rns/8692R_1-2021-3-10.pdf
Note: The chart shows the John Lewis annual category mix % since
2017/18.
What sold well in John Lewis
-- Technology, including TVs, computers and games consoles, were
in demand as customers sought home entertainment and needed support
with home working and schooling. Sports equipment increased, with
exercise bikes, treadmills and yoga equipment up.
What did not sell well in John Lewis
-- Fashion was down overall as increased sales in loungewear did
not offset falls in work and formal wear. Cosmetics sales also
fell, as did gifting for new babies with celebration events and
religious ceremonies on hold.
We expect most of these trends to reverse as we move out of
lockdown, with people buying less tech and more fashion and home
furnishings. Once a laptop has been purchased for home working or
home schooling, it is unlikely that another will be needed for a
while.
The channel shift online has meant higher fulfilment costs. Most
online orders have been for home delivery as opposed to Click &
Collect, (the latter is cheaper to fulfil), reflecting widescale
working from home, people's desire not to go out or inability to do
so because of self isolation. We would expect to see higher levels
of working from home sustained compared to before the crisis as
more people choose to adopt flexible working between home and
office on a permanent basis.
Click or paste the following link into your web browser to view
the graph titled 'John Lewis sales (GBPm) - fulfilment route'.
Refer to page 16 for this graph.
http://www.rns-pdf.londonstockexchange.com/rns/8692R_1-2021-3-10.pdf
Note: The chart shows the fulfilment mix of John Lewis sales on
a weekly basis, with a significant proportion of sales fulfilled
through home delivery since the start of the pandemic.
In Waitrose, it's not only what people shopped during the
pandemic that has changed but how they shop. In line with the rest
of the market, we have seen customers condense their shopping into
fewer visits, with bigger shops and fewer top up shops.
What sold well in Waitrose
-- Fresh food, ambient and beers, wine and spirits: fewer visits
to pubs and restaurants, meant more entertaining at home and home
cooking from scratch saw all these categories benefiting from a
sales uplift.
What did not sell well in Waitrose
-- Food to go: As people ate at home, sandwiches, takeaway
salads and pre-packed cakes saw lower sales. Our in-store
hospitality (cafes and wine bars) also suffered owing to lockdown
closures.
John Lewis Financial Services
Our financial services business - made up of the Partnership
(credit) Card, insurance products and foreign exchange - had a
mixed year. Foreign exchange obviously suffered as a result of
severe restrictions on overseas travel. Spend on the Partnership
Card was also squeezed. Set against that, sales of car and pet
insurance have both risen.
Financial product 2020/21 performance
Partnership Card Customer spend down (18)%
---------------------------------
Home insurance Customer policies down (4)%
---------------------------------
Car insurance Customer policies up 17%
---------------------------------
Pet insurance Customer policies up 16%
---------------------------------
Foreign exchange Customer transactions down (85)%
---------------------------------
We will be investing significantly in financial services as part
of our Partnership Plan ambition to grow profitability beyond
retail. We have taken some important first steps and in February
2021 launched an innovative home insurance product that gives
customers more flexibility and choice, and a new interest free
retail credit product.
COST OF THE PANDEMIC AND GOVERNMENT SUPPORT
Covid has affected the Partnership in three ways:
-- Contributed to a decrease in trading operating profit
(through a combination of lost sales, switch to lower margin
products and higher costs of fulfilment).
-- Increased labour costs through sickness absence, shielding,
and care of vulnerable family members of around GBP25m. This would
have been higher still - by GBP15m - without the redeployment of
more than 4,500 Partners from John Lewis to Waitrose.
-- Added direct costs for personal protection equipment,
security, testing and screens of around GBP40m. ([16])
These costs have been offset by Government support of GBP190m,
which we have taken only where we have judged critical:
-- The Coronavirus Job Retention Scheme (GBP55m), claimed
between March and July 2020. We made our last claim when we made
the decision not to reopen eight John Lewis shops following the
first national lockdown.
-- Business rates relief provided for all eligible Partnership
properties (GBP135m - supermarkets GBP85m; and department stores
GBP50m).
We also applied for and were granted a GBP300m Covid Corporate
Financing Facility loan from the Bank of England, which we repaid
in January 2021.
Government support has been critical to mitigate the significant
financial impact created by the pandemic and has enabled us to
continue to serve our customers and keep them, and Partners, safe.
Without this support the impact on the business would have been
greater, necessitating a greater level of restructuring and putting
more jobs at risk at a time when the high street is already under
stress.
OUTLOOK
At the time of writing, the country remains in lockdown and the
timeline set out by the Government suggests a gradual easing
through to the summer with non-essential retail permitted to reopen
no earlier than 12 April.
The Office for Budget Responsibility [17] is forecasting
unemployment to rise by 500,000 by the end of this year, peaking at
6.5% as the Government's furlough scheme unwinds at the end of
September.
The Bank of England in its recent Monetary Policy Report [18]
suggested that there is likely to be pent up demand from people who
have built up savings over the past year. Some people have saved
money from not being able to spend on going out or on holiday.
Evidence from countries that have come out of lockdown before the
UK, such as China or South Korea, suggests a relatively rapid
return to previous growth trajectories.
Given the degree of uncertainty, we do not believe it is
sensible to provide a profit forecast for the year ahead.
Turnaround
The coming year is a crucial one in our five year turnaround of
the Partnership as we set ourselves back on the path of sustainable
profit (GBP200m by 2022/23 and GBP400m by 2025/26); this would meet
our constitutional requirement to make 'sufficient' not maximum
profit and allow us to distribute a bonus to Partners.
To support the turnaround we will be investing GBP800m in the
year ahead, a 40% increase on recent years. We are targeting cost
savings of GBP300m a year by 2022/23 and will draw on our cash
reserves in a prudent and disciplined manner. We therefore expect
our financial results (including liquidity, debt ratio and profit
before exceptionals) to worsen in 2021/22 and then improve in later
years.
Cost reduction target GBPm
Head office transformation [19] 55
Operational restructuring 75
Restructuring programmes 130
Buying efficiencies 85
Operating efficiencies 85
------------------------------------- ----
Cost out activities 170
------------------------------------- ----
Total annual cost reduction target 300
------------------------------------- ----
The Partnership Plan envisages that by 2030, 40% of profits will
come from higher margin activities outside retail - namely
financial services, housing and outdoor living - that can more
sustainably support a model of employee ownership. The immediate
focus is to improve and expand our existing financial services
business.
We are investing significantly in our core retail business, to
ensure John Lewis and Waitrose remain the go-to brands for
customers seeking quality, value and sustainability - as well as
ease and convenience.
Priority investment for 2021 includes:
-- Improved digital capability for Johnlewis.com and Waitrose.com.
-- A new customer Waitrose fulfilment centre in Greenford, West
London which opened earlier this month.
-- Rebalancing our John Lewis physical estate to offer customers
more convenient and local options.
-- Continued investment in the automation of our distribution
centres, to increase capacity and improve e-commerce efficiency, in
support of both Waitrose and John Lewis.
-- New pricing approach in John Lewis, which will launch later this year.
-- Investment in customer service to ensure standards are
consistently high whichever channel customers shop.
-- Stronger sustainability in both brands, with further
reductions in plastics in Waitrose and the expansion of 'Unpacked',
tackling food waste to reduce food poverty via initiatives such as
'Farm to Family', and more progress towards reuse and recycling in
John Lewis, building on the success of our furniture rental trial
with Fat Llama.
We have carried out a detailed review of John Lewis customers
and our store portfolio. Research has confirmed that our shops are
really important, especially to our most loyal customers. What
customers want is the wonderful service from Partners and quality
they have always had, combined with better value for money and a
more enticing and inspiring shopping experience. They also want us
to be more local and convenient. One of the biggest reasons
customers don't shop in our stores is they are too far from where
they live.
We have examined every shopping district or 'catchment' in the
UK to see which are the strongest for John Lewis and what is the
right blend of online and physical experience that best meets our
customers' needs.
Click or paste the following link into your web browser to view
the diagram. Refer to page 19 for this diagram.
http://www.rns-pdf.londonstockexchange.com/rns/8692R_1-2021-3-10.pdf
We have developed an even deeper understanding of our customers'
evolving needs and we will create more local places to shop in John
Lewis. We have learnt:
-- Many catchments remain strong for us and will benefit from
investment to capitalise on shop and online opportunities.
-- There is a great opportunity for us to attract new target
customers who want to shop closer to home by bringing John Lewis
products into Waitrose, as well as improving the look and feel of
Click & Collect locations, and greatly expanding their number
through third parties like the Co-op.
-- There are catchments that have the potential to be great
locations for John Lewis - where the brand isn't present today -
but Waitrose is and with spare space.
-- There is scope in all our stores to provide an even more
compelling experience for our customers with branch Partners
helping to shape this.
-- We have lots of opportunities to improve John Lewis stores
without significant investment by improving ranges and being more
targeted towards local customers.
There is no getting away from the hard fact that some areas can
no longer profitably support the current size of store. In some
cases, a smaller, more flexible, more local format could work well
and we are looking at examples that have been successful in other
countries. Regrettably, this will almost certainly mean we do not
reopen all our stores when we exit lockdown. Discussions with
landlords are continuing and final decisions are expected by the
end of March.
Whenever we make a decision to close a shop, we know the impact
on our Partners and the wider community is felt strongly, these
decisions are not taken lightly and we will always make sure
affected Partners hear first. Partners whose stores close will be
supported to find opportunities within the Partnership wherever
possible and outside the Partnership where not.
For those leaving the Partnership, a retraining fund will
contribute up to GBP3,000 towards a recognised qualification or
course for up to two years for any Partner with two years' service
or more. All Partners will be given access to a three month support
programme to help with CV writing and interview skills. This is in
addition to redundancy payments.
In locations where we do not reopen existing stores we will be
looking at the right combination of options for that catchment in
order to ensure that we remain convenient for our customers and
that they can access John Lewis products and services on a
nationwide basis.
Investing in Partners
It is not enough that we become a sustainable business; our
Partners must be at the heart of everything we do. We are targeting
the return of bonus and payment of the voluntary real living
wage.
We will continue to develop and invest in our Partners as the
business transforms and creates new opportunities. We want to be
even stronger in respect of diversity and inclusion - and to widen
access to the Partnership including from disadvantaged youngsters
coming out of the care system.
During the pandemic it's been even more important to keep our
Partners safe, fit and healthy. We've been investing in Partners
health and wellbeing since 1929 - 19 years before the NHS - when we
introduced free in-house health and medical services to all our
Partners. Today, this continues through our Partnership Health
Services team and over GBP20m is invested annually.
This year, we stepped up the mental wellbeing support and
trialled new areas of support such as a My Resilience health
check-up tool. We also created an EatWell FeelWell campaign,
undertook a diabetes screening pilot and became one of the first UK
businesses to roll out rapid lateral flow Covid-19 testing for our
Partners, delivering 80,000 tests to date.
We also want our Partners to have a stronger say in running the
business, and we are investing more in the process, structures and
technology for our formal democracy - our Partnership Council,
which is voted on by Partners - for our customer facing Partners
about what goes in their store and to open up local channels for
Partners to give their views as to what improvements they want to
see in the Partnership.
The strength of the John Lewis Partnership is our community of
80,000 Partners - employee-owners sharing in the responsibilities
as well as the rewards of ownership.
ENQUIRIES
John Lewis Partnership
Chris Wynn, Partner & Director of Corporate Communications,
07980 242019, chris.wynn@johnlewis.co.uk
Sarah Henderson, Partner & Senior External Communications
Manager, 07764 676036, sarah.henderson@johnlewis.co.uk
Debt investors
Lynn Lochhead, Partner & Head of Treasury and Corporate
Finance, investor.relations@johnlewis.co.uk
GLOSSARY OF FINANCIAL AND NON-FINANCIAL TERMS
This glossary gives an explanation of financial and
non-financial terms included in the results statement.
TERM DEFINITION
=========================== =========================================================================
Above market reward These are Partner benefits which are higher than those typically
paid by our competitors, as a result of the Partnership
model. Above market rewards principally includes pensions,
long leave, Partner discount and costs of our democracy.
This measure is important for adjusting our financial Key
Performance Indicators (KPIs) to be able to assess them
against our competitors.
=========================== =========================================================================
Adjusted cash Operating profit before PB, exceptional items, depreciation
flow and amortisation, but after lease adjusted interest and
tax. This measure is important to assess our Debt Ratio.
2020/21 2019/20
GBPm GBPm
Operating profit before PB and
exceptional items 288 231
add back
Depreciation, amortisation and
write-offs 525 553
less
Lease adjusted interest (149) (145)
Tax (40) (18)
-------- --------
Adjusted cash flow 624 621
-------- --------
=========================== =========================================================================
Average NMP hourly Average Non-Management Partner hourly pay for Partners on
rate of pay permanent contracts and aged 18 years old and over.
=========================== =========================================================================
Capital investment Cash outflows in relation to additions to tangible fixed
assets (property, plant, and equipment), and intangible
assets (IT software) recognised on the balance sheet.
=========================== =========================================================================
Debt Ratio Comparison of our Total net debts to Adjusted cash flow.
This measure is important as it provides an indication of
our ability to repay our debts. 2020/21 2019/20
GBPm GBPm
Total net debts 2,127 2,436
Adjusted cash flow 624 621
Debt ratio 3.4 3.9
=========================== =========================================================================
Exceptional items Items of income and/or expense which are significant by
virtue of their size and nature are presented as exceptional
items. The separate reporting of exceptional items helps
to provide an indication of the Partnership's underlying
business performance.
=========================== =========================================================================
Full-time equivalent The hours worked by one Partner on a full-time basis. The
(FTE) concept converts the hours worked by several part-time Partners
into the hours worked by full-time Partners to enable like-for-like
comparisons of resource.
=========================== =========================================================================
Impairment A reduction in the value of an asset due to a fall in the
expected future economic benefits generated by the asset.
=========================== =========================================================================
Investment Total investment spend includes capital investment, revenue
investment, restructuring and redundancy costs, and lease
disposal costs.
=========================== =========================================================================
Like-for-like Comparison of sales between two periods in time
(LFL) sales (e.g. this year to last year), removing the impact
of shop openings and closures. Waitrose like-for-like
sales excludes fuel.
========================= ===========================================================================
Liquidity The cash, short term investments and undrawn committed
credit facilities we have available to us, which
we can use to settle liabilities as they fall due.
========================= ===========================================================================
Long leave The long leave scheme provides Partners up to six
months' paid leave after 25 years' Partnership service.
========================= ===========================================================================
n/m Not meaningful.
========================= ===========================================================================
Non-management Level 9 and Level 10 Partners, excluding Assistant
Partners (NMP) Section Managers in Waitrose.
========================= ===========================================================================
PB Partnership Bonus
========================= ===========================================================================
PBTBE Profit before PB, tax and exceptional items
========================= ===========================================================================
ppt Percentage point
========================= ===========================================================================
Profit before Profit before PB, tax and exceptional items. This
PB, tax and exceptional measure is important as it allows for a comparison
items of underlying profit performance.
2020/21 2019/20
GBPm GBPm
Profit before PB, tax and exceptional
items 131 70
Exceptional items (648) 107
Partnership Bonus - (31)
-------- --------
(Loss)/profit before tax (517) 146
-------- --------
========================= ===========================================================================
Profit per average Profit before PB and exceptional items but after
FTE tax, adjusted for above market reward, divided by
the average number of full-time equivalent Partners.
This measure is important as it provides the best
indication of Partner productivity.
2020/21 2019/20
GBPm GBPm
Profit before PB, tax and exceptional
items 131 70
Tax (40) (18)
Above market reward 105 160
-------- --------
196 212
-------- --------
Average FTEs 56,800 59,700
Profit per average FTEs (GBPk) 3.5 3.5
========================= ===========================================================================
Return on invested Operating profit before PB and exceptionals, adjusted
capital (ROIC) for above market rewards and a notional tax charge
(at the statutory marginal tax rate for the year),
as a proportion of average operating net assets.
The measure is important as it demonstrates how
effectively we are utilising our assets.
2020/21 2019/20
GBPm GBPm
Operating profit before PB and
exceptional items 288 231
Above market reward 105 160
Notional tax (74) (74)
-------- --------
319 317
-------- --------
Net assets 1,894 2,559
add back
Borrowings and overdrafts 904 762
Pensions deficit (net of deferred
tax) 572 363
Lease liabilities 2,037 2,095
Operational cash 327 489
less
Cash and short term investments (1,519) (916)
-------- --------
Operating net assets 4,215 5,352
-------- --------
Average operating net assets 4,784 5,512
ROIC 6.7% 5.8%
========================= ===========================================================================
Revenue investment Investment spend recognised directly in the income
statement.
========================= ===========================================================================
Total net debts The Partnership's borrowings and overdrafts, lease
liabilities, derivative financial instruments and
IAS 19 pension deficit (net of deferred tax), less
any liquid cash, short-term deposits and investments.
2020/21 2019/20
GBPm GBPm
Borrowings and overdrafts 904 762
Derivative financial instruments 16 18
Pension deficit (after deferred
tax) 572 363
Lease liabilities 2,037 2,095
Liquid cash, short-term deposits
and investments (1,402) (802)
-------- --------
Total net debts 2,127 2,436
-------- --------
========================= ===========================================================================
Total trading Total trading sales represents the full customer sales value,
sales including VAT, that is used to assess ongoing sales performance.
It is before adjustments for sale or return sales and other
accounting adjustments.
2020/21 Waitrose John Lewis Partnership
GBPm GBPm GBPm
Total trading sales 7,595 4,722 12,317
Value added tax (439) (767) (1,206)
-------- ---------- -----------
Sale or return, concessions
and other accounting adjustments (112) (227) (339)
-------- ---------- -----------
Revenue 7,044 3,728 10,772
-------- ---------- -----------
2019/20 Waitrose John Lewis Partnership
GBPm GBPm GBPm
Total trading sales 6,917 4,830 11,747
Value added tax (400) (784) (1,184)
-------- ---------- -----------
Sale or return, concessions
and other accounting adjustments (144) (268) (412)
-------- ---------- -----------
Revenue 6,373 3,778 10,151
-------- ---------- -----------
=========================== =========================================================================
Trading operating Trading operating profit represents operating profits used
profit to assess the performance of the John Lewis and Waitrose
brands and determine the allocation of resources to them.
It excludes centrally managed costs, including fixed property
costs and depreciation.
2020/21 Waitrose John Lewis Partnership
GBPm GBPm GBPm
Trading operating profit 1,145 554 1,699
Centrally managed costs
incl property (900)
-------- ---------- -----------
Depreciation and amortisation (510)
-------- ---------- -----------
Exceptional items (648)
-------- ---------- -----------
Net finance costs (158)
-------- ---------- -----------
Loss before tax (517)
-------- ---------- -----------
2019/20 Waitrose John Lewis Partnership
GBPm GBPm GBPm
Trading operating profit 1,063 734 1,797
Centrally managed costs
incl property (1,026)
-------- ---------- -----------
Depreciation and amortisation (539)
-------- ---------- -----------
Exceptional items 107
-------- ----------
Net finance costs (162)
-------- ----------
Partnership Bonus (31)
-------- ---------- -----------
Profit before tax 146
-------- ---------- -----------
=========================== =========================================================================
Trading operating Trading operating profit divided by Total trading sales.
profit %
=========================== =========================================================================
([1]) 2020/21 is a 53 week year and is reported on that basis.
2020/21 results have benefitted from an additional week's trade
compared to 2019/20. The impact on Profit before PB, tax and
exceptional items is small.
([2]) All comparatives are reported after the adoption of IFRS
16. Last year we reported alternative performance measures before
IFRS 16 and our 2019/20 Profit before PB, tax, exceptionals and
IFRS 16 was GBP123m.
([3]) The additional week in 2020/21 is estimated to inflate the
reported trading operating profit for the Partnership by around
GBP30m (Waitrose GBP20m and John Lewis GBP10m). Adjusting for this,
the Partnership trading operating profit would have declined by
around GBP(128)m.
[4] Includes the total cost increase in Partner discount
compared to 15% discount rate before the crisis.
[5] D ifferent from the legally stipulated National Living Wage, which we already pay
([6]) According to Bank of England data - https://www.bankofengland.co.uk/bank-overground/2020/how-has-covid-affected-household-savings
([7]) Office for Budget Responsibility (OBR)
([8]) 2020/21 is a 53 week year and is reported on that basis.
2020/21 results have benefitted from an additional week's trade
compared to 2019/20, but the impact on Profit before PB, tax and
exceptional items is small.
([9]) All comparatives are reported after the adoption of IFRS
16. Last year we reported alternative performance measures before
IFRS 16 and our 2019/20 Profit before PB, tax, exceptionals and
IFRS 16 was GBP123m.
([10]) Total trading sales growth reduces to 3% after adjusting
for the additional week in 2020/21.
[11] Further details of cash flow and KPI measures are included
in the glossary of financial and non-financial terms
([12]) Adjusting for the additional week in 2020/21, Waitrose
total trading sales growth reduces to 8% and John Lewis total
trading sales decline worsens to (4)%.
([13]) Like-for-like sales have been calculated on a 53 week vs
53 week basis. Waitrose LFL sales excludes fuel.
([14]) The Partnership has GBP575m of borrowings maturing over
the next four years. This is made up of GBP275m of bank loans
maturing between November 2021 and December 2023 and a GBP300m bond
maturing in January 2025.
([15]) Pension deficit calculated in line with accounting
standards, less the tax we expect to be able to recover in the
future. Before deferred tax the pension deficit was GBP684m
(pension liabilities of GBP7.44bn and pension assets of
GBP6.76bn).
([16]) This does not include thank you recognition to Partners or support to charities.
[17] Economic and fiscal outlook - March 2021
https://obr.uk/efo/economic-and-fiscal-outlook-march-2021/
[18]
https://www.bankofengland.co.uk/-/media/boe/files/monetary-policy-report/2021/february/monetary-policy-report-february-2021.pdf
[19] Includes restructuring of the Partnership's technology and change activities.
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR JMMPTMTABBRB
(END) Dow Jones Newswires
March 11, 2021 02:45 ET (07:45 GMT)
Lewis (j)4.250% (LSE:45GD)
Historical Stock Chart
From Dec 2024 to Jan 2025
Lewis (j)4.250% (LSE:45GD)
Historical Stock Chart
From Jan 2024 to Jan 2025
