Morrisons posts steady sales growth despite cost pressures

Core Viewpoint - Morrisons demonstrated stable trading and stronger Christmas sales despite challenging market conditions and external cost pressures, achieving positive like-for-like sales growth for 12 consecutive quarters [1][2][5] Group Performance - Group like-for-like (LFL) sales increased by 3.4% in the six weeks ending 4 January 2026, driven by fresh food, Market Street, and manufacturing operations [1] - For the financial year 2024/25, full-year group LFL sales rose by 2.8%, with Q4 LFL sales up by 2.4% [2] - Total revenue increased by 3.2% to £15.8 billion ($21.22 billion) for the year and by 3% to £3.9 billion in the fourth quarter [2] Sales and Growth - General merchandise sales increased by 10%, and Nutmeg clothing sales were up by 4.7% [2] - The Best food range delivered LFL growth of 17.4%, and online sales experienced double-digit LFL growth throughout the year [1][3] Financial Metrics - Underlying EBITDA from continuing operations remained unchanged at £835 million year-on-year, despite external cost pressures [3] - The company faced an annualised £200 million impact from the 2024 Budget, a cyber incident disruption, and higher-than-expected inflation [3] Market Position - Market share stood at 8.5% in December 2025, unchanged from January 2025, with price cuts announced on an additional 2,500 everyday items in January 2026 [4] - Debt was reduced by 46% from its 2022 peak, with in-year cost savings of £233 million bringing total savings to £845 million [4] Strategic Initiatives - The CEO highlighted the year as one of renewal and modernization, emphasizing resilience against external challenges [5] - Plans were confirmed to close 145 locations, including 17 convenience stores and 52 cafés, to align operational costs with usage and customer value [5]