Wm Morrison Supermarkets plc (MRW.L), which is recommending a takeover offer by Clayton, Dubilier & Rice, LLP or CD&R, reported Thursday that its first-half profit before tax fell 43.4 percent to 82 million pounds from last year’s 145 million pounds.
Adjusted profit before tax was 105 million pounds, compared to last year’s 167 million pounds. Basic adjusted earnings per share were 3.35 pence, compared to 5.32 pence a year ago.
Total revenue including fuel was 9.05 billion pounds, up 3.7 percent from last year’s 8.73 billion pounds. Fuel sales were up 26.9 percent to 1.51 billion pounds, recovering gradually as Britain opened up from lockdown.
Group like-for-like sales or LFL excluding fuel was down 0.3 percent. In the second quarter, Group LFL excluding fuel was down 3.7 percent.
Online LFL sales climbed 48 percent, and the growth was 237.1 percent on a two-year basis.
Further, the company said it has not declared any interim dividend due to offers from CD&R and Fortress, while last year’s dividend was 2.04 pence.
Looking ahead, the company continues to expect fiscal 2021 adjusted profit before tax including business rates paid to be higher than last year’s 431 million pounds excluding the 230 million pounds waived rates relief.
Regarding the offer, Morrison said it has received offers from CD&R and Fortress and is recommending CD&R’s offer of 285p per share. Shareholders will be asked to approve this offer at a Court Meeting and General Meeting to be held in or around October 18.
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