It's been a tough year in the supermarket business, but you wouldn't think it looking at the latest figures from Morrisons, the UK's fourth-largest grocer. Clever promotions and a focus on value helped it attract a record number of shoppers, and hang on to market share, despite adding less space than its rivals. And, with momentum building behind online, non-food, and convenience initiatives, there's plenty of growth yet to come.
A 15 per cent rise in petrol prices cost its customers an additional £600m over the year, money they would otherwise have spent in store, and chief executive Dalton Philips is under no illusions that the squeeze on consumer spending is likely to ease this year. But he believes that by actively helping its shoppers lower their food bills - partly through the introduction of new own-brand value lines - Morrisons is well-positioned to tap into the growing trend for tighter budgeting.
After successful trials, the group is now ready to begin the rollout of its M Local convenience format, with 70 stores to be opened in the next two years, and is also preparing to launch a broader online non-food offering later this year.
Broker Seymour Pierce expects pre-tax profits of £981m and EPS of 30.2p in the year to January 2013 (from £935m and 25.6p last year).
WM MORRISON SUPERMARKETS (MRW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 293p | MARKET VALUE: | £7.32bn | |
| TOUCH: | 292-293p | 12-MONTH HIGH: | 340p | LOW: 267p |
| DIVIDEND YIELD: | 3.7% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 216p | NET DEBT: | 27% | |
| Year to 29 Jan | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 13.0 | 612 | 20.8 | 4.80 |
| 2009 | 14.5 | 655 | 17.4 | 5.70 |
| 2010 | 15.4 | 858 | 22.8 | 8.20 |
| 2011 | 16.5 | 874 | 23.9 | 9.60 |
| 2012 | 17.7 | 947 | 26.7 | 10.7 |
| % change | +7 | +8 | +11 | +11 |
Ex-div:16 May Payment:20 Jun | ||||
