Marks & Spencer Group (MKS) Deutsche Bank’s Depositary Receipts Virtual Investor Conference summary

Business overview and performance

• Achieved GBP 3.9 billion in clothing and home sales, GBP 8 billion in food, and GBP 1 billion internationally, with strong operating profits across segments.

• Holds a 50% stake in Ocado Retail, the UK's leading online grocery retailer, with GBP 2.5 billion in sales last year.

• 99% of sales are own-label, positioning as a branded retailer and the UK's most trusted brand.

• Group sales grew 9% last year, with profit before tax and adjusting items up 58% and EPS up 46%.

• EBITDA reached GBP 1.4 billion, with free cash flow from operations at GBP 414 million, supporting deleveraging and dividend restoration.

Strategic priorities and transformation

• Focused on profitable sales growth, customer-centricity, and expanding online and international channels.

• Aims to grow market share by 1% in both food and clothing over FY 2023–2028.

• Targeting food operating margin over 4% and clothing/home over 10%, supported by a GBP 500 million structural cost reduction program.

• Investing in store estate rotation, supply chain modernization, and digital infrastructure.

• Capital allocation is disciplined, with clear hurdle rates and regular market reporting.

Operational efficiency and cost management

• Delivered GBP 180 million in cost reductions FY 2023–2024; targeting GBP 120 million more this year.

• Inventory holding reduced from 20 to 11 weeks, increasing full-price sales to 80%+ in clothing.

• Structural cost reduction includes automation, self-checkouts, and logistics optimization.

• Cost savings offset inflation in pay and energy, allowing volume growth to drive profitability.

• Maintains strong liquidity with GBP 1.1 billion cash and GBP 900 million unused credit facility.