Morrisons delivers 'resilient performance in challenging market conditions'
The Bradford-based supermarket chain Morrisons told investors it had delivered a “resilient” performance in challenging market conditions over the last financial year.
It also said it had achieved a good festive trading performance in a competitive market, with group like-for-like (LFL) sales up 3.4 per cent in the six weeks to 4 January 2026.
Morrisons said fresh food was at the heart of this improved performance, supported by Market Street and its manufacturing business.
In particular, there was an “excellent Christmas” recorded by its The Best premium range, with sales up by 17.4 per cent.
Morrisons also highlighted what it described as good growth in online sales over the festive season, and market-beating performances from General Merchandise (+10.0 per cent) and Nutmeg clothing (+4.7 per cent).
There was a “highly successful” Disney promotion, with more than one million customers participating, including younger families new to the Morrisons brand.
Morrisons made the comments as it updated investors on trading for the 52 weeks ending 26 October 2025, together with an update on sales over Christmas.
Full year total revenue was up by 3.2 per cent to £15.8 billion, while full year underlying EBITDA (earnings before interest taxation depreciation and amortisation) was maintained at £835 million, “despite significant and largely unexpected external cost headwinds”.
Morrisons said its market share was stable in December 2025 at 8.5 per cent, which was level with January 2025.
Rami Baitiéh, Chief Executive, said: “2024/25 was another year of renewal and modernisation for Morrisons.
"In a year when consumers were feeling the squeeze, we grew like-for-like sales for a twelfth consecutive quarter, maintained EBITDA and our market share, and demonstrated our resilience in the face of some tough external headwinds, from the cyber incident, rising inflation and government cost increases, which we worked hard to offset.
"In Q4 (the fourth quarter) we also made the changes and investments in prices, promotions and loyalty that laid the foundations for more robust momentum in the first quarter of the new financial year.
“We had a good Christmas in 2025, providing a solid foundation for the first quarter.
"As we enter 2026, the grocery market remains competitive and we are committed to our focus on delivering good value and keeping prices low for customers, announcing a further 2,500 price cuts at the start of January.”
In a call with journalists, the CEO said the market was very competitive with more investment from retailers in loyalty, promotions, availability and range, adding: "We are committed in developing our services to the customer.”
Jo Goff, the chief financial officer, said: “We worked hard during the year to offset the significant and unexpected cost headwinds arising from the government’s 2024 budget and other inflationary pressures, with our cost reduction programme delivering savings of £233 million, to take the total to date to £845 million.
"We expect to exceed our £1bn savings target by the end of FY26 (full year 2026).
“We also reduced gross debt by 10 per cent, while addressing near-term maturities. Morrisons has built a strong track record of deleveraging, and net debt is now down 46 per cent since 2022. We continue to have a strong balance sheet and a well invested overwhelmingly freehold supermarket estate.”