Morrisons revenues drop by £1bn amid supermarket price war
Revenues slipped to £17bn in its latest financial year, falling from £18.3bn a year earlier.
It marked the supermarket's lowest annual revenues since its private equity takeover in 2021, piling pressure on Rami Baitiéh, the chief executive, who has pledged to 'reinvigorate' the supermarket.
The decline came after Morrisons sold off its petrol forecourt business in April 2024. Stripping out the impact, underlying sales were marginally higher in the 2024 financial year at £15.3bn, compared with £14.7bn.
The petrol station deal provided a £2.6bn boost that propelled the supermarket into profit. Without the windfall, Morrisons would have remained loss-making.
The company recorded a £592m loss from its 'continuing operations' for the year, which includes the supermarket chain and its food manufacturing businesses. That compared to a £974m overall loss a year earlier.
Morrisons faced £701m of finance costs as it continues to battle with high debt repayments in the wake of its £10bn takeover by private equity firm Clayton Dubilier & Rice (CD&R).
The supermarket's debt pile stood at £7bn at the end of last October, down from £8.6bn a year earlier. It has stepped up repayments since then and the company said its debt stood at £3.5bn last month.
The latest annual figures come months after Mr Baitiéh warned about the 'challenging macro environment, with inflation driving subdued consumer sentiment'. He said more shoppers were hunting for value.
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