Wm Morrison Supermarkets revival continued in its latest trading year with sales at the debt-laden grocery chain rising by 4.1% and market share improving.
In the final three months of the year to October 27, Morrisons recorded its best quarter since 2021 with sales rising by 4.9% compared to the previous year.
Annual earnings increased to £835 million from £751 million, though the results are for the period before Christmas when Morrisons was affected by IT issues and supply problems.
US private equity firm Clayton, Dubilier & Rice bought the business for debt in 2021, but it has been the appointment of Rami Baitieh as chief executive that City analysts credit with spearheading the improvement.
With the results, Baitieh said: “This has been a year of urgent reinvigoration and positive progress for Morrisons.
“Customer transactions increased, market share grew from the second quarter and we saw positive switching from our competitors.
“The improvements across the business have resulted in better availability in our stores, sharper prices, more effective promotions and a strong and growing loyalty scheme.”
Morrisons axed more than 200 jobs following the increase in employer national insurance contributions announced by Chancellor Rachel Reeves.
Borrowings at the supermarket chain soared to as much as £8.5 billion at one point after CDR loaded it up with debt, but following the sale of its petrol forecourts and other cash-saving measures borowings are now below £4 billion.