Morrisons share price: Blue-chip grocer to pay special dividend

Supermarket reports rise in full-year sales and profit

Morrisons share price: Blue-chip grocer to pay special dividend

Wm Morrison Supermarkets (LON:MRW) will pay a special dividend to shareholders, the blue-chip grocer has said. The news came as the company posted its full-year results, unveiling a rise in sales and profit.

Morrisons’ share price has been volatile this morning, having given up 1.59 percent to 222.70p as of 08:57 GMT, having jumped 0.80 percent in early trade. The stock is currently underperforming the benchmark FTSE 100 index which is 0.29 percent better off at 7,159.35p points. The group’s shares have lost about three percent of their value over the past year, largely in line with a fall in the Footsie.

Morrisons posts full-year results

Morrisons announced in a statement this morning that its like-for-like sales had climbed 2.8 percent in the 53 weeks ended February 4, 2018. The group’s revenue meanwhile came in 5.8 percent higher at £17.3 billion, generating underlying profit before tax of £374 million, marking an 11 percent rise on the prior-year period.

Morrisons declared a final ordinary dividend of 4.43p, taking the full-year ordinary dividend to 6.09p, up 12.2 percent year-on-year, and further declared a special dividend per share of 4.00p.

Grocer upbeat on prospects

“Morrisons is now entering its third consecutive year of growth,” the group’s chairman Andrew Higginson commented in the statement. “We will continue to prioritise consistent, meaningful and sustainable growth, which I am confident we are well placed to keep delivering.”

Morrisons noted that it was on track for its target for annualised wholesale supply sales to partners to exceed £700 million in the current year. The grocer noted that it had now achieved £42 million of incremental profit from wholesale, services, interest and online, and was still on track for its medium-term target of between £75 million and £125 million.

As of 08:57 GMT, Wednesday, 14 March, Wm. Morrison Supermarkets plc share price is 222.90p.

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