Morrisons warns of price rises as profits nearly halve

Morrisons suitor Clayton Dubilier & Rice said it had reached agreement with the pension trustees of the British supermarket chain
Morrisons is at the centre of a bid battle between two U.S. private equity firms.
// Morrisons warns of “industry-wide” price rises
// It posted a 43% drop in profits in its half-year results
// Morrisons said it expects to help “mitigate” the increase in costs

Morrisons has warned it expects to see “industry-wide” price rises after posting a 43 per cent drop in profits for its half-year results.

The grocer, which is at the centre of a bidding war, said the price rises were to be “driven by sustained recent commodity price increases and freight inflation, and the current shortage of HGV drivers”.

Despite this, Morrisons expected to help “mitigate” the increase in costs, signalling that the continuing price war in the sector will limit higher prices at tills as the Big 4 grocers face competition from discounters Aldi and Lidl.

READ MORE: Bidding war for Morrisons set to be decided in auction showdown ‘within weeks’

Profits over the first half of its financial year to August 1 were damaged by further Covid-19 costs totalling £41 million.

It reported £80 million of lost earnings from its cafés, fuel and food-to-go as pandemic measures bit and demand remained constrained.

The firm’s bottom line statutory profit before tax figure came in at £82 million, compared to £145 million in the same six-month period last year, as a result.

Total sales rose by almost four per cent to £9.1 billion during the period thanks to a rise in online sales during the pandemic and its wholesale business.

Morrisons said that online like-for-like sales growth was up 48 per cent but overall like-for like sales growth, excluding fuel, declined slightly by 0.3 per cent due to competition in the sector.

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  1. Morrisons have a disingenuous pricing policy, which customers are becoming increasingly aware of. They also seem to have very disgruntled staff.

  2. Been in our local store in Dereham and prices have definitely gone up not by the odd penny but 40% and more.
    Off to Aldi who haven’t increased prices … yet


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