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LONDON, Sept 9 (Reuters) - British supermarket group
Morrisons, at the centre of a bid battle between two
U.S. private equity firms, on Thursday reported a 37.1% fall in
first-half profit, hurt by COVID-19 costs and lost profit in
cafés, fuel and food-to-go.
The group, which trails market leader Tesco,
Sainsbury's and Asda in annual revenue, said it made a
profit before tax and exceptional items of 105 million pounds
($144.5 million) in the six months to Aug. 1, versus 167 million
pounds in the same period last year.
Morrisons said direct COVID-19 costs were 41 million pounds,
while 80 million pounds of profit was lost in cafés, fuel and
food-to-go areas because of the pandemic.
In a results statement that looks likely to be Bradford,
northern England, based Morrisons' last as a publicly listed
company, it said total revenue including fuel was up 3.7% to
9.05 billion pounds, with like-for-like sales, excluding fuel
and VAT sales tax down 0.3%.
They were down 3.7% in the second quarter, having risen 2.7%
in the first quarter.
Morrisons maintained its profit guidance for the full
2021-20 year - profit before tax and exceptionals including
business rates paid to be higher than the 431 million pounds
made in 2020-21 excluding 230 million pounds of waived rates
relief.
But it warned of some industry-wide retail price inflation
during the second half, driven by sustained recent commodity
price increases and freight inflation, and the current shortage
of HGV drivers.
($1 = 0.7267 pounds)
(Reporting by James Davey; Editing by Kate Holton)
