Wholesale Channel Sales Up 20%, CEO Optimistic About Future Progress

  • Morrisons’ sales increased by 3.1% to £3.7bn in Q1
  • Wholesale channel sales up by 20%
  • Total group revenue fell by 0.9% due to lower fuel sales
  • Underlying EBITDA down by 10.7% due to inflationary headwinds
  • CEO David Potts: ‘good progress’ on cost reduction and working capital improvements
  • Morrisons expects 1,000 Daily stores by end of year

Morrisons has reported a 3.1% increase in sales to £3.7bn for the 13 weeks ending 30 April 2023, with like-for-like sales up by 1%. Wholesale channel sales grew by 20%, while total group revenue fell by 0.9% due to lower fuel sales year on year. The company’s underlying EBITDA for H1 dropped by 10.7% because of sustained investment in price and high inflationary pressures. Despite these challenges, CEO David Potts remains optimistic about the grocer’s progress in cost reduction and working capital improvements, expecting nearly 1,000 Morrisons Daily stores by year-end. He also highlighted significant improvements in customer satisfaction, availability, and value for money.

Factuality Level: 10
Factuality Justification: The article provides accurate information about Morrisons’ sales figures, CEO’s statement, and their plans for the future. It does not contain any irrelevant or misleading details, sensationalism, redundancy, personal perspective presented as a fact, invalid arguments, or logical errors.
Noise Level: 3
Noise Justification: The article provides relevant information about Morrisons’ financial performance and CEO’s comments on the company’s progress and plans. It does not contain any irrelevant or misleading information, but it is mostly focused on reporting financial figures without much analysis or exploration of long-term trends or consequences.
Financial Relevance: Yes
Financial Markets Impacted: Morrisons’ stock price may be impacted by the reported sales and financial performance.
Financial Rating Justification: The article discusses Morrisons’ quarterly sales, revenue, EBITDA, cost reduction programme, and debt, which are all financial topics related to a company in the retail industry. This information can potentially affect investors and financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk