Morrisons boosts sales and earnings despite discounter rivalry

Morrisons has reported a rise in sales and earnings for its latest trading period. The supermarket chain saw total sales climb 1.7 per cent to £4 billion, helped by strong fresh food promotions. Underlying earnings also increased by 5.7 per cent to £323 million in the first half of the year. Group like-for-like sales grew by 2.2 per cent in the three months to the end of April. The company maintained its market share without opening new stores, while competitors like Lidl expanded their presence. Lidl now holds 8.6 per cent of the UK grocery market, slightly ahead of Morrisons at 8.3 per cent.

Morrisons owns its entire food manufacturing supply chain, processing about a quarter of the fresh food it sells. This control helps the chain keep prices stable for customers, despite rising input costs and geopolitical uncertainty. Net debt has also dropped by 46 per cent to £3.17 billion since 2022.

The supermarket recorded a pre-tax loss of £381 million for the latest financial year, a slight improvement from the previous year. Looking ahead, Morrisons has made a strong start to the third quarter and has plans in place for the World Cup and Father’s Day. The results show steady progress in sales and earnings, with debt reduction adding financial strength. Morrisons continues to focus on price stability and its vertically integrated supply chain. The chain remains competitive despite pressure from expanding discounters.