The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Strong first half results
Profit before tax and adjusting items of £360.2m (2022/23: £205.5m)
Statutory profit before tax of £325.6m (2022/23: £208.5m)
Food sales up 14.7%; adjusted operating profit £164.9m (2022/23: £71.8m) and margin of 4.3%
Clothing & Home sales1 up 5.7%; adjusted operating profit £223.4m (2022/23: £171.4m) and margin of 12.1%
Ocado Retail share of adjusted loss £23.4m (2022/23: share of loss £0.7m)
International constant currency sales up 3.9%; adjusted operating profit £43.4m (2022/23: £39.0m)
Stronger balance sheet: free cash flow reducing net debt and interest costs. Restoration of dividend of 1p per share.
Strategy to reshape M&S is delivering
Food driving volume and share reflecting value investment, product innovation and quality upgrades
Clothing & Home building improved style and value perceptions and increasing full price sales mix
Ocado Retail reset progress; early stages of investment in value, service and increased M&S range
Structural cost reduction programme on track with savings of over £100m delivered in the first half
Accelerating store rotation; new full line stores and renewals performing ahead of plan
Progress on supply chain modernisation; Gist benefits on track; C&H early savings from network plan
More to do to drive online growth and improve returns on data, digital and technology investment
Reshaping with a clearer vision, purpose and performance-driven culture to drive execution and pace
Stuart Machin, Chief Executive said:
“Our strategy to reshape M&S for growth has delivered strong results in the first half. We have maintained our relentless focus on trusted value, giving our customers exceptional quality product at the best possible price. In Food, we delivered over 500 quality upgrades and invested over £30m in price, lowering the price of 200 products and locking prices on 150 customer favourites. Our lead on quality perception widened and value perception continued to improve. In Clothing & Home we backed lines with authority across core and seasonal product, maintaining our lead on quality and value perception and improving our style credentials. As a result, we’ve sold more product and served more customers across Food and Clothing & Home, with both businesses outperforming the market.
Sales growth was supported by our investment in store rotation, which continued at pace. Three full line stores opened and six were renewed, all attracting new customers and performing ahead of plan. Our cost reduction programme is on track with over £100m savings delivered in the half and investment in supply chain modernisation driving efficiencies, translating volume growth to improved margin and profitability.
I am clear that if we serve our customers well, we serve our shareholders well, and our unrelenting focus on trusted value is matched by disciplined capital allocation. We have further strengthened our balance sheet and net debt position, with an interim
Need a good forward-looking statement, not the crap below that was in the August update.
There remain considerable uncertainties about the economic outlook, and there is a risk that the consumer market will tighten as the year progresses