MORRISONS has revealed lower earnings as bosses at the supermarket giant pledged to push prices lower in a bid to win back customers squeezed by the rising cost of living.

The Bradford-based group, which was bought by private equity giant Clayton, Dubilier & Rice (CD&R) in 2021, revealed that adjusted earnings fell by 15 per cent to £828 million over the year to October 30.

Morrisons highlighted that the earnings performance was at the "top end" of guidance and included improved profitability in the final quarter.

Joanna Goff, chief finance officer of Morrisons, said the group has seen signs of cooling inflation and expects improved earnings next year.

"Inflation is by no means over but there are signs of steadying more recently," she said.

"We will see cost inflation over the year still but have recognised opportunities around working capital and our cost-saving programmes which will allow us to keep improving profitability."

Bradford Telegraph and Argus: Morrisons has reported its latest resultsMorrisons has reported its latest results (Image: Morrisons)

Lower profits for the past year came as the retail giant recorded a 4.2 per cent decline in group like-for-like revenues, excluding fuel.

Last week, the retailer announced hundreds of price reductions following its latest investment in pricing.

David Potts, chief executive of Morrisons, said: "In a very difficult period for consumers and businesses alike, we are continuing to do everything we can to keep prices down for customers and to support our colleagues.

"As a vertically integrated retailer, we felt the impacts of last year's racing inflation more immediately than our competitors and this did have an impact on our pricing position.

"However, since October we have executed a rolling programme of meaningful price cuts, price freezes and fuel promotions for our customers and our competitive position has considerably sharpened."

Mr Potts continued by looking ahead at the next 12 months at Morrisons.

He added: “Looking ahead, this current year has many opportunities.

"We have clear plans in place to continue to invest in price and in hours in our stores; to open new supermarkets and further refresh the core estate; to invest in McColl’s and accelerate the conversion programme; to develop further the fast-growing My Morrisons app and to grow volumes through our unique food making operations around the country.

"Together I’m confident that these moves will enable us to make further significant progress in developing Morrisons into a broader, stronger, more accessible and more popular business. Morrisons also promised to pump investment into the McColl's convenience store business it bought out of administration last year."

 

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