WM Morrison Supermarkets PLC (MRW) is a United Kingdom-based company engaged in the business of retail supermarket store and associated activities. It is the UK's second largest food & drug retailer by market capitalisation. The company is having an employee base of 110,000 people catering to the needs of 11 million customers every week. The company via its Morrisons.com covers over 11 million households. WM Morrison is focused on helping customers to save money on a daily basis by providing permanently low prices. The company sells its product under its Morrisons brand. Its key competitors are Lenta Ltd, Greggs Plc, J Sainsbury Plc and Tesco.
Q1 Trading Update - 13 weeks to 5 May 2019
The company’s like-for-like (LFL) sales surged by 2.3 per cent (excluding fuel). The increased sales were driven by an increase in sales from the retail business by 0.2 per cent and wholesale business contributed with 2.1 per cent for the period. Total sales for the period increased by 2.9 per cent including fuel and 2.4 per cent excluding fuel. The sales from retail business remained strong and the company was able to deliver positive like-for-like sales in Q1 FY20 for the fourth consecutive year. There was economic and political uncertainty impacting the confidence of consumers. Sales during the festive season (Easter period) remained strong as LFL was up by 1.7 per cent on last year and 3.4 per cent on a two-year basis. The company’s wholesale business also made significant growth in Q1 FY2020.
Financial Highlights – Financial Year 2019 (£, million)
(Source: Annual Report, Company Website)
Morrison’s total revenue for FY2019 rose by around 2.7 per cent to £17.73 billion against £17.26 billion reported in FY2018. Company's ex-fuel revenue (on a 52-week basis) surged by 5.1 per cent, which is the highest growth which the company has reported since FY10. Total revenue excluding fuel surged by 3.2 per cent to £14.0 billion. Profit before tax and exceptional items stood at £406 million and witnessed a growth of 8.6 per cent as compared with 53-weeks revenue of £374 million during FY2018. Total net profit attributable to the common shareholders stood at £244 million in FY2019 against £311 million reported in FY2018. In FY19, basic earnings per share stood at GBX 10.34 as compared to GBX 13.30 reported in FY18.
Share Price Performance
Daily Chart as at May-28-19, before the market closed (Source: Thomson Reuters)
On 28th May 2019, at the time of writing (before the market closed, at GMT 09:26 AM, WM Morrison Supermarkets PLC shares were trading at GBX 199.35, up by 0.05 per cent against the previous day closing price. Stock's 52 weeks High and Low is GBX 265.33/GBX 196.65. At the time of writing, the share was trading 24.86 per cent lower than the 52w High and 1.37 per cent higher than the 52w low. The company’s stock beta was 0.76, reflecting lower volatility as compared to the benchmark index. The outstanding market capitalisation was around £4.78 billion with a dividend yield of 3.31 per cent.
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