UK retailer Marks and Spencer (M&S) has reported its half year results for the 26 weeks ended 30th September 2023, boasting particularly strong food sales and a profit before tax of £360.2 million.
It reported that its food sales were up by 14.7%, with an adjusted operating profit of £223.4 million (up from the 2022/2023 profit of £171.4 million) and a margin of 12.1%.
Its profit before tax and adjusting items was £360.2 million, a large increase when compared to the 2022/2023 profit of £205.5 million.
The retailer said that during the 26 weeks, it was food driving volume, as it reported a statutory profit before tax of £325.6 million. This was a £117.1 million increase from the 2022/2023 profit of £208.5 million.
Additionally, its Ocado Retail share of adjusted loss was £23.4 million, while the 2022/2023 share was £0.7 million.
Reshaping M&S
Stuart Machin, chief executive said: “Our strategy to reshape M&S for growth has delivered strong results in the first half. We have maintained our relentless focus on trusted value, giving our customers exceptional quality product at the best possible price.
“In Food, we delivered over 500 quality upgrades and invested over £30 million in price, lowering the price of 200 products and locking prices on 150 customer favourites. Our lead on quality perception widened and value perception continued to improve. As a result, we’ve sold more product and served more customers across Food and Clothing & Home, with both businesses outperforming the market.
“Sales growth was supported by our investment in store rotation, which continued at pace. Three full line stores opened and six were renewed, all attracting new customers and performing ahead of plan. Our cost reduction programme is on track with over £100 million savings delivered in the half and investment in supply chain modernisation driving efficiencies, translating volume growth to improved margin and profitability.
“I am clear that if we serve our customers well, we serve our shareholders well, and our unrelenting focus on trusted value is matched by disciplined capital allocation. We have further strengthened our balance sheet and net debt position, with an interim dividend payment being made to shareholders for the first time in four years.”
