7th May 2015 06:17
LONDON (Alliance News) - Wm Morrison Supermarkets PLC Thursday reported a drop in sales in its first quarter but said the company's financial position remains "strong" as it predicted higher profit in the second half of its financial year than in the first.
The grocer said total sales in the 13 weeks to May 3 were down 5.1% on the same period a year earlier, while like-for-like sales were down 6.6%.
It said more stores were closed in the period than opened, as part of its restructuring plans, leading to a net reduction in selling space of over 50,000 square feet. Steps to "simplify" the head office, which is resulting in a number of job cuts, is anticipated to incur costs of GBP30 million to GBP40 million during the financial year.
Morrisons said the financial position of the group remains "strong" with net debt falling by around GBP150 million in the period to GBP2.2 billion, compared with GBP2.3 billion at the end of the last financial year.
Underlying profit before tax in expected to be higher in the second half of the year than in the first, the supermarket added.
"This is a business with many attributes, some unique. Our task is to use those advantages to improve the shopping trip for customers and create value," Chief Executive David Potts said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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