Morrisons share price subdued even as grocer posts rise in interim profit

Company says it will pay special dividend

Morrisons share price subdued even as grocer posts rise in interim profit

Shares in Wm Morrison Supermarkets (LON:MRW) have fallen marginally into the red as the blue-chip grocer updated investors on its interim performance. The company posted a rise in profits, having benefitted from this summer’s warm weather spell across the UK, as well as the World Cup championship.

As of 08:49 BST, Morrisons’ share price had given up 0.49 percent to 264.35p. The shares are marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.16 percent lower at 7,301.57 points.

Morrisons posts interims

Morrisons announced in a statement this morning that its like-for-like sales had grown 4.9 percent in the half-year ended August 5 as compared with the prior-year period, while its revenue had climbed 4.5 percent to £8.8 billion. The grocer’s underlying profit before tax came in nine percent higher at £193 million. The blue-chip supermarket hiked its interim dividend by 11.4 percent to 1.85p, and unveiled a special dividend of 2.00p, taking its total interim payout to shareholders to 3.85p, marking a 132 percent rise year-on-year.

The company explained that it had seen strong retail sales in the second quarter of its financial year, partly “assisted by favourable weather and the football World Cup”.

Grocer unveils Thailand deal

Morrisons further announced that it had agreed a deal to supply Thailand’s Big C grocery store chain. The UK grocer said that in the coming months, it  will begin exporting a range of around 100 Morrisons own-brand items to the Bangkok-headquartered retailer.

The Telegraph noted in its coverage of the news that the deal was the first of its kind for the British grocer which also supplies Amazon Fresh, Ocado, McColl’s and Sandpiper, the biggest grocer on the Channel Islands.

As of 09:19 BST, Thursday, 13 September, Wm. Morrison Supermarkets plc share price is 256.75p.

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