John Lewis Profits Fall 99% As Morrisons Posts Best Sales In Almost 10 Years
Below is a selection of the morning's key market news, earning reports & trending stories - see more here.
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Amid merger talk amongst its competitors, today posted nine-year high sales with its half year results.
The company’s like-for-like sales were up 4.9% for the half year, and up 6.3% for the second quarter of the year.
Revenue was up 4.5% to £8.80bn while underlying profit rose 9% to £193m.
With these impressive results, the supermarket chain announced a further special dividend of 2.00p per share.
David Potts, Chief Executive, said: "Strong growth, including our best quarterly like-for-like sales for nearly a decade, together with another special dividend for our shareholders, shows how new Morrisons can keep improving for all stakeholders.
"Morrisons continues to become broader, stronger and a more popular and accessible brand, and I am confident that our exceptional team of food makers and shopkeepers can keep driving the turnaround at pace.”
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Things were very different at another big name British chain, with John Lewis posting a 99% profit slump in “challenging times”.
The company, which also owns Waitrose, saw a profit drop from £83m to £1.2m for the six months to 28th July.
John Lewis Partnership also warned that full-year profits were expected to be “substantially lower” than last year.
The John Lewis store division took the biggest hit, registering a £19.3m first-half loss compared with £54.4m in the previous year.
Waitrose, however, saw a marginal 2.6% increase in like-for-like sales.
John Lewis Partnership chairman Sir Charlie Mayfield said: “These are challenging times in retail. Profits before exceptionals are always lower and more volatile in the first half than the second half.
"It is especially so this half-year, driven mainly by John Lewis & Partners where gross margin has been squeezed in what has been the most promotional market we’ve seen in almost a decade.” -
Betting & gaming group GVC Holdings announced its first financials since its takeover of Ladbrokes Coral today.
The £4bn acquisition was completed in March and the company said the integration was “progressing well”, the listed firm having identified synergies of at least £30m.
Net gaming revenue and revenue were both up 8%, as underlying operating profit grew by 17% to £227.9m.
Speaking about the acquisition, GVC CEO Kenneth Alexander said: “The acquisition of Ladbrokes Coral completed on 28 March and the integration of that business is progressing well.
“We have now identified capex synergies of at least £30min addition to the £130m cost synergies and we are well placed to deliver those savings while driving top line growth.”
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