Morrisons’ pre-tax profit slides to £165 million in fiscal 2021

Written by: Wajeeh Khan
March 11, 2021
  • Wm Morrisons’ pre-tax profit slides to £165 million in fiscal 2021.
  • The British supermarket chain reports £17.60 billion of revenue.
  • Morrisons declared 5.11 pence a share of final dividend on Thursday.

Wm Morrison Supermarkets plc (LON: MRW) said on Thursday that its pre-tax profit in fiscal 2021 posted a decline as the ongoing COVID-19 crisis fuelled costs. The company, however, still managed to generate higher revenue last year.

Morrisons shares, which you can learn to buy online here, slid more than 1% in premarket trading on Thursday but recovered most of the intraday loss on market open. The British grocer’s stock is now trading at £1.76 per share.

Morrisons reports £17.60 billion of revenue

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Morrisons said that its pre-tax profit printed at £165 million in the financial year that concluded on 31st January. In fiscal 2020, its pre-tax profit had come in at a much higher £435 million. The figure accounts for £230 million worth of repayment to the British government.

The fourth-largest chain of supermarkets in the UK booked £290 million of total direct Coronavirus-related costs in fiscal 2021 that topped its latest guidance by roughly £10 million. Morrisons said on Thursday.

“Profit measures were significantly impacted by both the considerable direct costs of COVID-19 and other pandemic-related impacts on profit.”

The Bradford-headquartered company valued its revenue in the recently concluded year at £17.60 billion – a slight increase from £17.54 billion in the previous year. On a comparable basis, it translates to an 8.6% annualised growth. Morrisons saw a 9.0% increase in like for like sales in the fourth quarter.

In separate news from the United Kingdom, WPP said that it plans on relaunching its share buyback programme immediately after cost cuts.

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Morrisons declares 5.11 pence a share of final dividend

Morrisons’ board announced 5.11 pence per share of final dividend on Thursday that pushed its full-year payment up, to 11.15 pence per share. In comparison, the British firm had paid 8.77 pence in fiscal 2020.

For fiscal 2022, Morrisons is confident that its pre-tax profit will be better, on a comparable basis, than 2021, before the repayment of business rates relief. In a report published in the first week of January, the British grocer reported an 8.1% increase in its comparable sales in the 22 weeks that concluded on 3rd January.

Wm Morrison Supermarkets plc performed fairly downbeat in the stock market last year with an annual decline of more than 10%. At the time of writing, it has a market capitalisation of £4.27 billion and a price to earnings ratio of 16.27.