Supermarket Chain Bounces Back with £344m EBITDA and £3.9bn Sales

  • Morrisons reports strong bounce back in sales and profits
  • In-store trials of focused product range boost sales
  • Improvements to Market Street concept contribute to growth
  • £58m cost savings targeted at £1bn business efficiencies by FY26
  • Strong growth in convenience business with 42 franchise stores opened
  • Potential for hundreds more franchise-owned stores in the future

Morrisons CEO Rami Baitiéh has announced a strong recovery for the supermarket chain following disruptions caused by a cyber attack last year, with an underlying Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of £344 million and sales reaching £3.9 billion in the half to 27 April – up 7.2% year-on-year. The retailer attributes this growth to in-store trials of a more focused product range, improvements to its Market Street concept featuring Farm Shop influences, and a new World Foods offer. Additionally, £58 million in cost savings were achieved during the period as Morrisons aims for £1 billion in business efficiencies by FY26. Baitiéh highlights the importance of value amidst challenging macro environment and consumer sentiment influenced by inflation. The retailer has seen positive customer reactions to its fresh food strengths and outstanding value, with strong growth in its convenience business through 42 franchise Morrisons Daily stores opened in the second quarter. Baitiéh sees potential for hundreds more franchise-owned stores as they expand in the growing and fragmented convenience market.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Morrisons’ financial performance, its strategies for growth, and the CEO’s perspective on the market environment. It also includes relevant details about the company’s sales, profitability, and plans for expansion. However, it lacks some specific data or context to support the claims made.
Noise Level: 3
Noise Justification: The article provides relevant information about Morrisons’ financial performance and growth strategies after a cyber attack, with quotes from the CEO. It also mentions the company’s focus on value and convenience stores expansion. However, it lacks in-depth analysis or exploration of long-term trends or consequences of decisions.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses Morrisons’ financial performance, including its underlying EBITDA, sales growth, cost savings, and plans for franchise stores. It does not directly impact specific financial markets or companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:

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