Morrisons’ losses hit £381m after steep debt costs

Core Viewpoint - Morrisons reported a £381 million loss for the last year, primarily due to high borrowing costs and reduced consumer spending [1][2]. Financial Performance - The company's debt interest bill reached £281 million in 2025, hindering profitability efforts [2]. - Net debt decreased to £3.1 billion from £3.5 billion over the summer, marking a £33 million improvement year-on-year [3]. - Adjusted earnings, excluding interest costs and tax, amounted to £835 million [3]. - Yearly revenues increased by 3.2% to £15.8 billion, although like-for-like sales fell by 2.4% in the last three months of the financial year [7]. Market Position and Competition - Morrisons is facing challenges from competitors, with Lidl gaining market share, holding 8.1% compared to Morrisons' 8.3% as of November [11]. - The company is at risk of losing its position as the fifth largest supermarket in Britain [11]. Consumer Trends - The customer base is shifting, with more pensioners and less affluent shoppers, making them more sensitive to price changes [8]. - The overall grocery market has been declining towards the end of the financial year, influenced by inflation and budget uncertainties [7]. Management Commentary - The CEO described the period as "challenging" and urged the government to avoid imposing additional costs on retailers to help maintain lower prices [6][9][10]. - The company is focusing on addressing pricing, promotions, loyalty, and availability to improve its market position [12].