British retailer Marks & Spencer (M&S) has today (Wednesday, May 22) reported a 13% increase in annual food sales, ahead of market expectations.
In financial results for the full year up to March 30, 2024, the group reported a 58% increase in pre-tax profit to £716.4 million (2022/23: £453.3 million).
The company’s food business recorded adjusted operating profit of £395.3 million (2022/23: £248 million) and margin of 4.8% in the period.
While clothing and home sales were up by 5.3%, the division had adjusted operating profit of £402.8 million (2022/23: £323.8 million) and margin of 10.3%.
M&S
Stuart Machin, Marks & Spencer chief executive said that two years into the group’s restructuring plan, “Reshape for Growth”, they can “see the beginnings of a new M&S”.
“Food and Clothing & Home grew volume and value share ahead of the market and sales increased across stores and online.
“Both businesses have now delivered 12 consecutive quarters of sales growth and this trading momentum gives us wind in our sails, and confidence that our plan is working.
“We are becoming more relevant, to more people, more of the time,” he said.
Machin said that the retailer has upgraded 1,000 food products and launched 1,300 new lines.
He added that investment in store rotation and the end-to-end supply chain is “beginning to pay off”.
“Disciplined capital allocation underpins our plan, and the financial health of the business is as strong as it’s been in decades.
“Free cash flow has increased, financial net debt has been eliminated, and returns on investment have improved.
“The strength of the balance sheet, coupled with the sustained improvement in performance, means we have the headroom and confidence to invest for future growth as well as introduce a 3p dividend,” he said.
However, Machin noted that while it has been “a good year”, there is “much work to do”.
“We have a clear plan, a clear vision for the future, and there is so much opportunity ahead of us. We are at the beginnings of a new M&S,” he said.