Retail Insight Network

Morrisons records 3.7% rise in total sales for Q2 2023/24

The company’s underlying EBITDA for H1 2023/24, excluding the fuel business, was up by 16% to £321m.

Supermarket chain Morrisons has reported a 3.7% increase in total sales, excluding fuel, to £3.8bn ($4.8bn) for the second quarter (Q2) of the fiscal year 2023/24.

Between 29 January and 28 April 2024, Morrisons witnessed an increase of 4.1% in group like-for-like (LFL) sales, excluding fuel/value-added tax, compared to a 1% rise in 2022/23.

The supermarket chain’s underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) for the first half (H1) of 2023/24, excluding the fuel business, was up by 16% to £321m.

Morrisons stated that it has recorded “good progress” in three strategic areas: operations optimisation, commercial excellence and new value creation.

During the quarter, Morrisons invested in the Morrisons More Card loyalty scheme, seeing an approximately 50% rise in the swipe rate.

The company is targeting a 70% rise in its More Card swipe rate in the medium term.

The supermarket giant completed a debt reduction tender in June 2024, with a 35% reduction in group debt to £4.0bn from a peak of approximately £6.2bn.

Morrisons chief financial officer Jo Goff said: “Our debt has now reduced by over a third and we made further progress on our cost savings programme with £78m delivered in the quarter, taking the total since the start of this year to just over £450m, in line with our £700m three year target.”

In April, Morrisons concluded the sale of its 337 petrol forecourts, including convenience retail kiosks and ancillary services, to the Motor Fuel Group (MFG).

The deal, announced on 30 January 2024, was valued at £2.5bn.

Morrisons also acquired 38 convenience stores from SandpiperCI, a retail and food service operator in the Channel Islands.

The company's goal is to own and operate 2,000 Morrisons Daily convenience stores in the UK by 2025.

Morrisons CEO Rami Baitiéh said: “With the McColl’s conversion programme now complete and the recent acquisition of 38 stores in the Channel Islands, we have over 1,600 Morrisons Daily convenience stores across the country, about two-thirds of which are wholly owned.”