Supermarket Chain Sees Improvement in EBITDA and Revenue Despite Difficulties
- Morrisons’ Q2 sales down by 6.4%
- Adjusted EBITDA increased to £71m from £62m
- Revenue up by £115m (2.6%) to £4.59bn
- Fuel sales increased by 54%
- Price cuts on over 500 products
- Impact of discounts for NHS staff, teachers and Blue Light cardholders
- CEO David Potts praises colleagues’ dedication and hard work
Morrisons has reported a 6.4% decline in like-for-like sales in Q2, with the company’s adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increasing by £9m to £71m from £62m compared to the previous year. Revenue for the 13 weeks reached £4.59bn, a 2.6% increase from last year’s £4.47bn, primarily due to a significant rise in fuel sales (up 54%) and partly offset by a decrease in Supermarket like-for-like sales in a normalizing grocery market environment post Covid. The company also launched one of its largest price cut campaigns involving over 500 products. CEO David Potts acknowledged the difficult consumer environment and praised colleagues’ dedication amidst the cost of living crisis, crediting own manufacturing operations for delivering value and quality to customers.
Factuality Level: 10
Factuality Justification: The article provides accurate information about Morrisons’ financial performance, including sales figures, adjusted EBITDA, revenue, and CEO comments on the impact of Covid-19 and cost savings. It also explains the factors affecting grocery sales and fuel sales growth. The article is free from sensationalism, redundancy, opinion masquerading as fact, bias, and logical errors.
Noise Level: 3
Noise Justification: The article provides relevant information about Morrisons’ financial performance and the impact of Covid on their sales and operations. It also includes quotes from the CEO that add context to the situation. However, it could benefit from more in-depth analysis or discussion of the company’s long-term strategies and potential future challenges.
Financial Relevance: Yes
Financial Markets Impacted: Morrisons’ stock price and other supermarket stocks may be impacted by the reported financial results and outlook on the cost of living crisis.
Financial Rating Justification: The article discusses Morrisons’ financial performance, including sales, EBITDA, revenue, and the impact of Covid-19 on their business. It also mentions the company’s efforts to address the cost of living crisis, which could affect the stock prices of related companies in the supermarket industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no mention of an extreme event happening in the last 48 hours. The article discusses Morrisons’ financial performance and its response to the cost of living crisis.
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