Morrisons turnaround gathers pace as supermarkets posts best sales quarter in nine years
Morrisons continued its turnaround as sales at the country's fourth largest supermarket soared in its best quarter for nine years.
The figures
The group's like-for-like sales were up 6.3 per cent in the second quarter.
Revenue for the first half of the year was also up 4.5 per cent to £8.8bn compared with the same period in 2017.
Underlying pre-tax profits climbed 9 per cent to £193m.
Why it's interesting
The supermarket chain was forced to close some stores in 2015 after recording a 47 per cent drop in profit to £126m.
But the group's sales have now risen for the past 11 consecutive quarters and its online service now reaches 75 per cent of British households.
Chief executive David Potts said the summer weather and the World Cup helped sales so far this year but also praised company initiatives, such as its Fresh Look rebrand and pricing.
Shares in the £6bn-valued company have risen 23 per cent since the start of the year but fell 1.1 per cent this morning despite the results.
What Morrisons said
Chief executive, David Potts, said: “Strong growth, including our best quarterly like-for-like sales for nearly a decade, together with another special dividend for shareholders, shows how new Morrisons can keep improving for all stakeholders.
"Morrisons continues to become broader, stronger and a more popular and accessible brand, and I am confident that our exceptional team of food makers and shopkeepers can keep driving the turnaround at pace."
What the analysts said
Richard Hunter, from interactive investor, said: “Bumps in the road remain, but Morrisons' journey has certainly become more smooth in recent times.
“There are any number of real improvements in fortunes for investors to savour, with revenues, like-for-like sales and the earnings per share metric all up strongly.”
He added: “There are, however, some hints of caution.
“The company's traditional weakness in terms of its convenience store and online offerings are still lagging in comparison to its larger rivals, while the proposed merger of Sainsbury's and Asda will heap additional pressure on an already fiercely competitive sector.”