Interim Results 2016/17
5 October 2016
Colleague interview with Dave Lewis and Alan Stewart
Headlines
Positive like-for-like sales and volume growth in all regions across the Group
- UK like-for-like sales growth of 0.6% and Group like-for-like sales growth of 1.0%1
- UK volumes up 2.1%; UK transactions up 1.6%
- International volumes up 3.3%; International transactions up 0.3%
Significant progress against all three priorities
- Competitive in the UK – all key customer metrics improving relative to the market
- More secure balance sheet – net debt reduced by further £0.8bn since year-end
- Rebuilding trust – brand health returned to highest level in more than four years2
Customer, colleague and supplier partner measures all improving
- Most improved retailer in terms of customer recommendations3
- 78% of colleagues recommend us as a ‘great place to work’ (up from 70% in 1H 2014/15)
- Very strong improvement in UK supplier satisfaction measure at 78% (up from 51% in 2014/15)
Well-placed against our plans – on track to deliver £1.2bn Group operating profit before exceptional items for the full year
- Rebuilding profitability whilst investing in our customer offer
- Group operating profit before exceptional items up 60% in the first half
- Exclusive fresh food brands performing ahead of plan; investment part-offset by mix benefit
Sharing our ambition to deliver 3.5-4.0% Group operating margin by 2019/20
- Underpinned by six strategic drivers, we will strengthen our customer offer whilst creating long-term, sustainable value for shareholders
- Includes £1.5bn further operating cost reductions, to be realised through a more efficient and responsive distribution system, a simpler store operating model & goods not for resale savings
- Total capex will average £1.4bn per year to support this programme
Statutory results: statutory revenue £27.3bn, up 1.4%; statutory profit before tax £71m, down (28.3)%
1. Like-for-like is the growth in sales from stores that have been open for at least a year at a constant foreign exchange rate and includes online sales.
2. As per YouGov BrandIndex, August 2016.
3. As per the periodic Customer Spotlight Tracker.
Materials
- News release online
- Results statement
- Watch the webcast
- Webcast transcript
- Results presentation
- Audio download