1. News
June 30, 2022

Morrisons posts 2.6% revenue growth in second quarter of FY22

The retailer said that the increase was driven by a recovery of its fuel sales.

British supermarket chain Morrisons has reported total revenue of £4.6bn for the second quarter (Q2) of the fiscal year 2022 (FY22), which ended on 1 May.

The figure includes fuel sales and represents a 2.6% increase from the corresponding period of the fiscal year 2021 (FY21).

The growth was driven by a recovery in fuel sales, which increased by 54%, but was partly offset by a decline in supermarket like-for-like (LFL) sales.

During Q2 2022, Morrisons’ LFL sales, excluding fuel and VAT, dropped by 6.4%, while its LFL sales, including fuel, grew by 2.5%.

The retailer’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose by £9m to £71m on a year-over-year basis.

Morrisons CEO David Potts said: “In a very fragile and difficult consumer environment, Morrisons has continued to deliver a resilient performance.

“This quarter traded over a period of significant Covid restrictions last year when travel and hospitality were both severely limited.

“As those two activities returned to more normal patterns this year, we saw very strong growth in fuel sales but a step back in grocery.” 

Earlier this month, the UK’s Competition and Markets Authority (CMA) approved the £7bn acquisition of Morrisons by US private equity firm Clayton, Dubilier & Rice (CD&R).

The deal had been placed on hold over concerns of potentially higher petrol prices in some areas of England, Scotland and Wales.

Potts added: “Now that the CMA process has concluded, we are looking forward to working more closely with CD&R as we continue to drive the key pillars of our strategy, focused on being a broader, stronger, popular and accessible business.”

Last month, Morrisons acquired McColl’s convenience business from administrators, but the CMA is currently investigating the deal over concerns it could ‘substantially’ reduce competition in UK markets.