TIDMMRW

RNS Number : 2881X

Morrison(Wm.)Supermarkets PLC

05 May 2016

5 May 2016

Wm Morrison Supermarkets PLC

Q1 Trading Statement - 13 weeks to 1 May 2016

In the 13 weeks to 1 May, like-for-like(*) (LFL) sales excluding fuel were up 0.7% (up 1.2% including fuel). Total sales(*) excluding fuel were down 1.8% (down 0.9% including fuel), reflecting the impact of supermarket closures and exit of the M local chain. Online contributed 1.0% to LFL during the period. Fuel LFL was positive despite deflation of almost 11%.

We continue to simplify and speed up the business, and improvements we are making to the shopping trip are proving popular with Morrisons customers. LFL transactions were up 3.1% in the quarter and LFL volume growth was again strong. Deflation was 2.6%, as we continued to invest in becoming more competitive for customers.

Transaction growth was in part driven by a significant increase in sales of Food to Go (up over 17% year-on-year) following a successful launch of many new and improved products. In addition, our new self-scan and express checkouts continue to help customers shop more often and queue less. These factors also continue to impact items per basket (down 2.8%).

The 'Morrisons Makes It' programme highlighting our unique food maker and shopkeeper strengths was launched in the quarter, and is a key element of communicating what makes Morrisons different.

Our new Free From range has started very well and is proving popular both with those customers with allergies and many others. Free From sales were up over 70% year-on-year during the quarter.

Our financial position is strong and we remain committed to a net debt target of GBP1.4bn to GBP1.5bn by year end.

David Potts, Chief Executive, said:

"We are encouraged by progress across our six priorities. There is still much to do and our colleagues are working very hard to improve the shopping trip and save customers every penny we can. Customers are responding and satisfaction levels remain ahead of last year. We are of course pleased with a second consecutive quarter of positive LFL sales, which demonstrates our aim to stabilise trade is taking effect."

Outlook

We will continue to invest in improving the shopping trip for customers. We expect continued deflation and sustained improvement in customer satisfaction. Growing LFL volume remains a key priority for every member of the Morrisons team.

* For supermarkets and online, reported ex-VAT and in accordance with IFRIC 13. Total sales for 2015/16 included M local.

Sales performance (ex-VAT)

 
                                 2015/16              2016/17 
-------------------  ------------------------------  -------- 
                         Q1      Q2      Q3      Q4        Q1 
-------------------  ------  ------  ------  ------  -------- 
 Group LFL: 
-------------------  ------  ------  ------  ------  -------- 
 Sales ex-fuel(*)     -2.9%   -2.4%   -2.6%    0.1%      0.7% 
-------------------  ------  ------  ------  ------  -------- 
 Sales inc-fuel(*)    -6.6%   -5.4%   -5.1%   -0.2%      1.2% 
-------------------  ------  ------  ------  ------  --------

* For supermarkets, online and convenience stores (until M local store disposals on 25(th) October 2015), reported ex-VAT and in accordance with IFRIC 13

Summary of operational key performance indicators (KPIs)

 
                                          2015/16              2016/17 
----------------------------  ------------------------------  -------- 
                                  Q1      Q2      Q3      Q4        Q1 
----------------------------  ------  ------  ------  ------  -------- 
 LFL Items per Basket 
  Year-on-year change(*)       -0.1%   -1.1%   -1.9%   -3.4%     -2.8% 
----------------------------  ------  ------  ------  ------  -------- 
 LFL Number of Transactions 
  Year-on-year change(*)       -3.2%   -2.6%   -2.0%    1.6%      3.1% 
----------------------------  ------  ------  ------  ------  --------

* Excludes online and convenience

- ENDS-

Enquiries:

Wm Morrison Supermarkets plc

 
 Trevor Strain - Group Finance 
  Director                        0845 611 5000 
 Andrew Kasoulis - Investor 
  Relations Director              0778 534 3515

Media Relations

 
 Wm Morrison Supermarkets 
  plc:                       Julian Bailey    0845 611 5362 
 Citigate Dewe Rogerson:     Simon Rigby      0207 282 2847 
  Kevin Smith                                 0207 282 1054

There will be an analyst conference call at 9 a.m. today, the details of which are as follows:

 
 Dial in number:    +44 (0)20 3427 1916 
 Password:          Morrisons

Replay facilities - available for 7 days

 
 Dial in number:    +44 (0)20 3427 0598 
 Access Pin:        1944346

This information is provided by RNS

The company news service from the London Stock Exchange

END

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(END) Dow Jones Newswires

May 05, 2016 02:00 ET (06:00 GMT)

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