- 2024/25 underlying EBITDA flat at 835 million pounds
- Remains loss-making at statutory pretax level
- Trading improved during Christmas period
- Industry data shows Morrisons underperforming rivals
LONDON, Jan 21 (Reuters) - British supermarket group Morrisons on Wednesday reported flat core earnings for its 2024/25 year, blaming higher costs, but said trading improved over the key Christmas period.
The UK's fifth-largest grocer, owned by U.S. private equity firm Clayton, Dubilier & Rice, said underlying earnings before interest, tax, depreciation and amortisation (EBITDA), its preferred earnings measure, were static at 835 million pounds ($1.1 billion) in its year to October 26 despite revenue rising 3.2% to 15.8 billion pounds.
The earnings outcome was attributed to a 200 million pound increase in costs as a result of the UK government's 2024 budget, the impact of a cyber incident in the first quarter and higher than expected inflation.
While like-for-like sales growth in its fourth quarter to October 26 dipped to 2.4%, from 3.0% in the third quarter, it rose to 3.4% in the six weeks to January 4, helped by a 17.4% jump in sales of Morrisons' 'The Best' premium own label range.
"We had a good Christmas in 2025, providing a solid foundation for the first quarter," said CEO Rami Baitiéh.
Baitiéh, CEO since 2023, is attempting to modernise Morrisons, which differs from its main rivals in that it also has its own production operations, making half of the fresh food it sells.
However, industry data, published earlier this month, showed Morrisons continuing to underperform traditional peers Tesco and Sainsbury's as well as discounters Aldi and Lidl.
Tesco and Sainsbury's have also published robust Christmas trading updates.
At the statutory level, Morrisons remained loss-making, reporting a pretax loss of 381 million pounds versus a loss of 414 million pounds in 2023/24, reflecting depreciation and amortisation charges and interest costs of 281 million pounds.
Morrisons ended the 2024/25 year with debt of 3.17 billion pounds, down 46% from its 2022 peak.
($1 = 0.7443 pounds)
Reporting by James Davey, Editing by Paul Sandle, Kirsten Donovan
Source: Reuters