Morrisons’ sales climb as COVID-19 continues to fuel eCommerce

Wm. Morrison Supermarkets plc (LON: MRW) said on Tuesday its sales jumped in the fiscal first quarter as the COVID-19 restrictions continued to fuel eCommerce. In its earlier report published in March, the London-listed firm noted £165 million of pre-tax profit for fiscal 2021.

Morrisons opened at 184.50 pence per share in the stock market on Tuesday and is currently exchanging hands at 185.66 pence per share. In comparison, the fourth largest chain of supermarkets in the UK had started the year at a slightly lower 181.10 pence per share.

Morrisons’ digital sales climbed by 100%

On a year over year basis, Morrisons sales came in 5.3% higher in the fourteen weeks that concluded on 9^th May. Excluding fuel, the increase stood at 3.3% in the said period. Comparable sales, on the other hand, climbed by 4.7% in the fourteen weeks and 2.7% excluding fuel.

In comparison, comparable sales had surged 8.7%, excluding fuel, in the first quarter of fiscal 2020. Morrisons valued its Coronavirus-related costs at £27 million in Q1. As the health emergency fuelled online shopping in recent months, first-quarter digital sales posted an over 100% increase.

The supermarkets chain said food-to-go sales were up in recent months and its cafes also showed signs of improvement as restrictions started to ease. Retail sales, according to Morrisons, were up 1.6% in the first quarter, while wholesale climbed by 1.1%.

In separate news from the United Kingdom, eCommerce company THG plc said it was raising £710 million in fresh capital.

Morrisons’ guidance for fiscal 2022

For the current year, Morrisons expects £435 million of pre-tax profit on an adjusted basis. The next year, fiscal 2023, as per the Bradford-headquartered company, will see a significant increase in profit as the company recovers completely from the Coronavirus hit and no longer has to bear related costs.

Commenting on the financial update on Tuesday, CEO David Potts said:

“The pandemic is not yet over, but it is in retreat across Britain, and there is much to be positive about as something approaching normal life begins to take shape.”

Wm Morrison Supermarkets plc performed fairly bearish in the stock market last year with an annual decline of more than 10%. At the time of writing, the British company has a market capitalisation of £4.46 billion and a price to earnings ratio of 46.68.