Supermarket Giant Battles Pandemic Costs and Maintains Growth

  • Morrisons profits impacted by £155m due to Covid-related costs
  • Group like-for-like sales excluding fuel up 8.7% in HY
  • Q2 performance accelerated with LFL sales of 12.3%
  • Total revenue down 1.1% at £8.73bn, total revenue growth excluding fuel up 8.8%
  • Operating profit before exceptionals down 20% at £201m
  • Covid-19 costs partly mitigated by £93m in business rates relief
  • CEO David Potts praises colleagues’ efforts and looks forward to building on momentum

Morrisons has reported a £155 million hit to its half-year profits due to costs related to the Covid-19 pandemic, but the supermarket giant has maintained growth in sales. Group like-for-like sales excluding fuel increased by 8.7% during the first half of the financial year, with Q2 performance accelerating significantly compared to Q1. Total revenue was £8.73 billion, down 1.1% year on year, but total revenue growth excluding fuel stood at 8.8%. Operating profit before exceptionals fell by 20% to £201 million. The company’s CEO, David Potts, praised colleagues for their efforts during the crisis and looked forward to building on the momentum created in the first half of the year.

Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about Morrisons’ financial performance during the Covid-19 pandemic, including specific figures and details on how the pandemic affected their profits. It also includes a quote from the CEO that adds context to the situation.
Noise Level: 3
Noise Justification: The article provides relevant information about Morrisons’ financial performance during the Covid-19 pandemic and how it affected their profits. It also includes quotes from the CEO, but does not delve too deeply into the long-term implications or provide actionable insights for readers.
Financial Relevance: Yes
Financial Markets Impacted: Morrisons (a British supermarket company)
Financial Rating Justification: The article discusses the financial impact of Covid-19 on Morrisons, a British supermarket company, and its effect on their profits and operating costs, which is relevant to financial topics and impacts the company’s performance in the market.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text, but the article discusses the financial impact of Covid-19 on Morrisons’ profits.

Reported publicly: www.retailsector.co.uk