Morrison(Wm.)Supermarkets PLC Interim Management Statement (4196M)
07 May 2015 - 4:01PM
UK Regulatory
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:
+44 (0) 20 3003
Dial in number: 2666
Password: Morrisons
Replay facilities - available
for 7 days
+44 (0) 20 3350
Dial in number: 6902
Access Pin: 6383590#
This information is provided by RNS
The company news service from the London Stock Exchange
END
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