TIDM91WZ
RNS Number : 1625H
Morrison(Wm.)Supermarkets PLC
04 April 2022
Date: 4 April 2022
WM MORRISON SUPERMARKETS LIMITED
INVESTOR UPDATE
Wm Morrison Supermarkets Limited (formerly Wm Morrison
Supermarkets PLC) (the "Company" and together with its consolidated
subsidiaries, the "Group", "Morrisons", "we" or "our") announces
the following updates regarding certain financial data, current
trading and non-financial data to investors.
Financial Data
-- The Group released the audited consolidated financial
statements of the Group for the 39 weeks ended 31 October 2021
prepared in accordance with UK-adopted International Financial
Reporting Standards and the applicable legal requirements of the
Companies Act 2006 and IFRS adopted pursuant to Regulation (EC) No
1606/2002 as it applies in the European Union available at:
www.morrisons-corporate.com/investor-centre/financial-reports
-- The Group released the unaudited condensed consolidated
interim financial statements of the Group for the 13 weeks ended 30
January 2022 prepared in accordance with UK-adopted IAS 34 Interim
Financial Reporting with the comparative audited financial
information for the 39 weeks ended 31 October 2021 and the
unaudited comparative financial information for the 13 weeks ended
31 January 2021 available at:
www.morrisons-corporate.com/investor-centre/financial-reports
-- Structuring EBITDA[1] for the 52 weeks ended 30 January 2022: GBP1,178 million
-- EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin:
For the For the For the For the For the
39 weeks 39 weeks 13 weeks 13 weeks 52 weeks
ended 1 ended 31 ended ended 30 ended 30
November October 31 January January January
2020 2021 2021 2022 2022
EBITDA[2]
(GBPm) 595 378 200 290 668
----------------- ----------------- ------------------ ----------------- -----------------
Adjusted
EBITDA[3]
(GBPm) 660 625 350 316 941
----------------- ----------------- ------------------ ----------------- -----------------
Adjusted EBITDA
Margin[4]
(%) 5.0 4.6 7.8 6.9 5.2
----------------- ----------------- ------------------ ----------------- -----------------
-- Capex Components (as a percentage of a revenue):
For the
52 weeks
ended 30
January
2022
Store Refresh,
New Space & Growth 0.9%
----------------
Maint. & Produc. 1.9%
----------------
Other NA
----------------
Total 2.8%
----------------
-- Online Estimated Market Share (based on third-party research):
As of December
2021
Estimated Market
Share 9%
---------------------
Current Trading
-- We believe that the developments in the geopolitical
environment since the beginning of February 2022 as well as ongoing
and increasing inflationary pressure is impacting consumer
sentiment and spending, which we expect to adversely impact the
wider grocery market as well as our performance while these
conditions persist - we are unable to predict how long that will
be. We believe that these developments have had an impact on sales
and EBITDA since the beginning of February 2022. We are taking
steps to mitigate the impact of these developments on our EBITDA
for the remainder of the year. Unless these conditions improve, the
impact of these developments could have a material adverse effect
on our sales and EBITDA for the year.
Non-Financial Data
-- On 28 February 2022, Market Holdco 3 Limited (the "Parent")
and Market Parent Finco Plc (the "Senior Notes Issuer") , among
others, entered into a purchase agreement with a major
institutional investor pursuant to which , subject to customary
closing conditions, this investor agreed to purchase
GBP1,200,000,000 in aggregate principal amount of 6 3/4 % senior
notes due 2029 (the "Senior Notes") from the Senior Notes Issuer.
The principal indirect beneficial owners of the Parent and the
Senior Notes Issuer are funds managed or advised by Clayton,
Dubilier & Rice, LLC. The Senior Notes were issued on 1 April
2022. The Senior Notes Issuer on-lent the net proceeds from the
issuance of the Senior Notes to the Parent, who used such proceeds
to repay in full the amounts outstanding under t he senior bridge
loan facilities incurred by Parent .
-- On or prior to 6 May 2022, the Company expects to redeem its
GBP181,100,000 aggregate principal amount outstanding of 4.625 per
cent. Notes due 8 December 2023 (the "2023 Notes"), at a price
equal to the aggregate principal amount of the 2023 Notes
outstanding plus the accrued and unpaid interest plus the
applicable premium.
-- Michael Gleeson recently notified the Company of his
resignation and stepped down from his position as Chief Financial
Officer on 4 April 2022 but will remain in the business for a
period of time to ensure an orderly transition. It is expected
that, subject to any CMA consent requirements , Trevor Strain will
supervise the Company's finance function on an interim basis
following the departure of Michael Gleeson, with the new Chief
Financial Officer to be appointed in the next few weeks.
-- On 4 March 2022, the Company changed its accounting reference
date for its fiscal year end from 31 January, with the year end
typically on the Sunday falling between 29 January and 4 February,
of each year to 31 October, with the year end on a Sunday not more
than seven days before or after that date.
For further information please contact:
Rebecca Jones, Head of Finance - Investor Relations, at
rebecca.jones@morrisonsplc.co.uk
Richard Nichols, Finance Director - Tax and Treasury, at
richard.nichols@ morrisonsplc.co.uk
Important Notice
Forward-looking statements
Certain statements in this announcement are forward-looking.
Where the announcement includes forward-looking statements, these
are made by the Directors in good faith based on the information
available to them at the time of their approval of this report.
Such statements are based on current expectations and are subject
to a number of risks and uncertainties, including both economic and
business risk factors that could cause actual events or results to
differ materially from any expected future events or results
referred to in these forward-looking statements. Unless otherwise
required by applicable law, regulation or accounting standards, the
Group undertakes no obligation to update any forward-looking
statements whether as a result of new information, future events or
otherwise.
Non-IFRS Measures
Certain financial data included in this announcement consists of
"non-IFRS financial measures." These non-IFRS financial measures
may not be comparable to similarly-titled measures as presented by
other companies, nor should they be considered to be alternatives
to the historical financial results or other indicators of the
Company's income or cash flow based on IFRS.
[1] Structuring EBITDA is defined as operating profit plus
depreciation and amortisation, less cash operating leases and
business rates relief phasing, plus exceptionals, supply chain
disruption and direct COVID-19 costs, as further adjusted for
recovery of lost profit, dividend from joint ventures, public
listing savings and share based payments and pro forma initiatives
and synergies. In the prior Investor Update dated 6 December 2021
(the "December Update"), we classified supply chain disruption
costs as part of exceptionals.
[2] EBITDA is defined as operating profit plus depreciation and
amortisation . In the December Update, we defined EBITDA as
operating profit plus exceptionals, depreciation and amortisation .
Therefore, the EBITDA figures presented in the December Update are
not directly comparable to EBITDA figures presented herein.
[3] Adjusted EBITDA is defined as operating profit plus
depreciation and amortisation, less cash operating leases and
business rates relief phasing, plus exceptionals, supply chain
disruption and direct COVID-19 costs . In the December Update, we
(i) classified supply chain disruption costs as part of
exceptionals, and (ii) did not include business rates relief
phasing in the definition of Adjusted EBITDA. However, we believe
that these changes do not impact comparability of Adjusted EBITDA
figures presented in the December Update and Adjusted EBITDA
figures presented herein.
[4] Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenue.
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END
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