by Sarah Hills FoodBizDaily.com London
March 11 2010 - Morrisons has reported a 21% increase in underlying profits in 2009 and increased customer numbers as it continued to grow its reach across the UK.
Announcing its preliminary results for the year ending 31 January 2010, the fourth largest grocery retailer in the UK said that customer growth had driven a “record performance” for the company.
Weekly average customer numbers were up 7% based on average weekly till transactions compared to the previous year.
Turnover was up 6% to £15.4bn, compared to £14.5bn in 2008/09 and profit before tax was £858m (£655m in 2008/09). Underlying profits increased 21% to £767m.
The results cover a year in which the retailer opened 43 new stores in pursuit of plans to move from being a national presence to a “truly nationwide retailer”, with an eye on further expansion of its store estate.
It said that there were still many parts of the country where it was under-represented, adding: “We estimate that there are some seven million households in the UK not located within a convenient 15 minutes drive time from a Morrisons store - a higher target customer base than any of our three larger competitors.
“A key part of our strategy, therefore, is to grow the number of Morrisons stores.”
Commenting on the 2009 results, Sir Ian Gibson, non-executive chairman, said: “Once again our focus on fresh food and great value appealed to shoppers everywhere, and we have successfully grown sales and profits to record levels.
“We expect the economic environment to remain challenging, disposable incomes to be under pressure and value to remain a high priority for consumers.
“The Board believes that Morrisons’ unique offer of high quality, fresh food at great value prices will continue to attract customers from our competitors and drive market share growth in the year ahead.
“For the longer term, we will continue to utilise our balance sheet strength to invest for growth, with new space, new manufacturing capability and new systems priorities in the year ahead.”
Meanwhile, Dalton Philips is to take on the role of CEO on March 29th, following Marc Bolland’s resignation to join rival retailer M&S.
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Wm. Morrison Supermarkets plc
Address: Hilmore House Gain Lane Bradford, ENG BD3 7DL United Kingdom
Telephone: +44-0845-6115000
Fax: +44-1274-487269
About Wm. Morrison Supermarkets plc
Wm Morrison Supermarkets PLC is a United Kingdom-based company engaged in the operation of retail supermarket stores. Its business is mainly related to food and grocery. The Company’s wholly owned subsidiaries include Bos Brothers Fruit and Vegetables BV, Farmers Boy Limited, Farock Insurance Company Limited, Neerock Limited, Wm Morrison Produce Limited, Rathbone Kear Limited and Safeway Limited. During the fiscal year ended February 1, 2009 (fiscal 2009), the Company had 382 stores and 12 distribution centers. During fiscal 2009, the Company opened nine stores at Giffnock, Gorleston, Whitefield, Kidderminster, Granton, Northallerton, Blandford Forum, Clifton (Nottingham) and Holyhead.