Morrisons (MRW) share price dips at the open after it reports annual profits and sales growth for first time since 2012
Morrisons has reported a 50 per cent increase in profit for the year to 29 January, with turnover and earnings growing despite store closures.
The figures
Turnover was up 1.2 per cent to £16.3bn, from £16.1bn the year before.
Profit before tax rose by 49.8 per cent, to £325m from £217m, while underlying pre-tax profit was up 27.4 per cent to £432m from £339m.
Underlying earnings per share increased by 39.8 per cent to 10.86p from 7.77p.
Life-for-like sales excluding fuel and VAT were up 1.7 per cent and grew in every quarter, the supermarket said.While the number of transactions climbed four per cent during the year, the number of items per basket dropped by 4.6 per cent.
Shares dipped 4.6 per cent at the open.
Why it's interesting
This is the first year of sales and profit growth Morrisons has recorded since 2012. The full year results follow reports of a very merry Christmas period, in which the retailer saw sales increase 2.9 per cent.
It's a sign that the turnaround plan led by chief executive David Potts is working out. The former Tesco exec was brought in two years ago to bring the struggling supermarket back up to standard, and while the end of Potts' first year was marked by Morrisons' demotion to the FTSE 250, the group is now back in the FTSE 100.
Since Potts came on board, the company's share price has risen by 25 per cent.
Read more: Is David Potts the CEO with the Midas touch?
What Morrisons said
"Our full year of like-for-like sales and profit growth was powered by listening to customers, and shows what our hard-working team of food makers and shopkeepers can do," said Potts.
"But, it's only one year. Our turnaround has just started, and we have more plans and important work ahead. If we keep improving the customer shopping trip, I am confident that Morrisons will continue to grow."