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Marks and Spencer Group Plc (M&S) has announced its full-year financial results for the 52 weeks ending March 30, 2024, marking another year of strong financial performance and significant progress in its strategic reshaping. The company reported a profit before tax and adjusting items of £716.4 million, up from £453.3 million in the previous fiscal year. The statutory profit before tax also saw an increase, reaching £672.5 million compared to £475.7 million in 2022/23.
Strong Performance Across Segments
M&S’s Food segment reported impressive growth, with sales increasing by 13.0% and an adjusted operating profit of £395.3 million, up from £248.0 million in the previous year. The segment also achieved a margin of 4.8%. The Clothing & Home (C&H) division also performed well, with sales up by 5.3% and an adjusted operating profit of £402.8 million, compared to £323.8 million last year, achieving a margin of 10.3%.
However, the company's share of the adjusted loss from the Ocado Retail JV was £37.3 million, up from £29.5 million in 2022/23. International sales (excluding ROI) saw a slight decline of 1% in constant currency, with an adjusted operating profit of £47.7 million, down from £67.9 million.
Strategic Reshaping and Growth
M&S’s ongoing strategy to reshape and rejuvenate its operations is bearing fruit. The Food segment delivered market-leading volume growth and introduced strong innovations to attract a broader customer base. The C&H division achieved significant market share growth, focusing on style, value, quality, and reducing markdowns.
The company’s efforts in store rotation and renewal have yielded strong returns, with plans for increased renewals and a developing pipeline of new stores. The M&S.com platform has accelerated growth, attracting new customers and boosting profitability. The acquisition of Gist has generated quick payback and laid the foundation for developing the Food distribution network.
Structural cost savings amounted to £180 million in 2023/24, with the five-year objective now increased to £500 million from £400 million. Increased free cash flow of £414 million has further improved the balance sheet, positioning the company with net funds at the year-end. M&S also announced the capacity to accelerate high-return investments and restore a full-year dividend of 3 pence per share.
Outlook and Future Plans
Looking ahead, M&S remains focused on driving volume growth in both the Food and C&H segments to meet its market share and margin objectives set out at the 2022 Capital Markets Day. The company has made significant investments in colleague pay, funded by structural cost reductions and other efficiencies, with other cost inflation largely offset by reduced energy costs.
