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Supermarket group Morrisons has reported that like-for-like sales and total revenue excluding fuel rose, as low demand for fuel during the COVID-19 crisis weighed on results, and committed to an interim ordinary dividend of 2.04p.
In its interim results for the half year to 2 August 2020, the supermarket chain said group like-for-like (LFL) sales ex-fuel/ex-VAT were up 8.7%, comprising a retail contribution of 7.9% and wholesale contribution of 0.8%.
Total revenue was £8.73bn during the period, down 1.1% year on year, attributed to low fuel demand, while total revenue growth excluding fuel was up 8.8% to £7.55bn.
Morrisons said that fuel sales were 'severely affected' during lockdown, with volume gradually recovering through the second quarter so that fuel sales were down 37.4% to £1.19bn in the half year.
The retailer confirmed it would pay a 2020/21 interim ordinary dividend of 2.04p per share, up 5.7%, which it said reflected the strong first-half trading performance and confident outlook, but that it had deferred another final special dividend relating to the second half of 2019-20 due to the uncertainty around the future impact of COVID-19.
Statutory pre-tax profit fell 28.2% to £145m in the half year and operating profit before exceptionals was 20.2% lower at £201m as Morrisons said that profit was temporarily impacted by the 'considerable costs' of COVID-19, especially extra payroll, bonus, colleague and customer safety protection measures, distribution costs, and seasonal waste and markdown, which in total came to £155m during the first half.
Morrisons saw substantial growth in all its online and home delivery channels during the first half, including Morrisons.com, Amazon, food boxes, doorstep delivery and Deliveroo.