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Morrisons moves back into profit | Morrisons moves back into profit |
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Supermarket group Morrisons has moved back into the black, six months after posting its first annual loss. | Supermarket group Morrisons has moved back into the black, six months after posting its first annual loss. |
Pre-tax profits for the 25 weeks to 23 July came in at £134.2m ($253m), against an £82.1m loss last time. | Pre-tax profits for the 25 weeks to 23 July came in at £134.2m ($253m), against an £82.1m loss last time. |
The Bradford-based group said it was now seeing the benefits of its 2004 Safeway takeover, the integration of which had pushed it into the red. | |
Excluding fuel, like-for-like sales - which strip out the impact of new stores - rose 4.6% during the period. | |
The group added that turnover was flat at £5.85bn, but said the performance was "satisfactory" given that 66 stores closed during the period. | |
Customer numbers were also up 5.3% on a like-for-like basis, while converted stores had put in a "particularly strong performance" in bringing in new shoppers, Morrisons added. | |
'Strong' performance | |
Chairman Sir Ken Morrison said the turnaround of the company following the integration of Safeway was ahead of schedule with sales at its 373 stores "stronger than anticipated". | |
Its three-year Optimisation Plan was now on track to save £50m by cutting back on six million labour hours, while a further £30m should be saved by cutting back on duplicate facilities and improving efficiency. | |
As part of the turnaround the supermarket brought in new chief executive Marc Bolland at the start of September to replace Bob Stott. | |
"The group's sales levels are slightly stronger than we had anticipated at the time of preparing the Optimisation Plan, and give us confidence for a stronger second half despite an expectation of a tougher trading environment," Morrisons said. | |
In the first eight weeks of the second half like-for-like sales, excluding fuel, were up 5.9%. |