Wm Morrison Supermarkets (WMS) Q1 2025 earnings summary

Executive summary

• Q1 sales reached £4 billion, up 2.4% year-over-year, with group like-for-like sales up 2.1%.

• Underlying EBITDA rose to £151 million, a 7.1% increase year-over-year, excluding a £47 million adjustment for the Blue Yonder supply chain incident.

• The Blue Yonder cyberattack disrupted supply chain operations, but availability and sales have since recovered, with Q2 performance stronger than Q1.

• Strategic restructuring includes closing underperforming cafes, Market Kitchens, counters, and other units, impacting 365 roles.

• Management team expanded with key senior hires to strengthen leadership in trading, convenience, data, and online.

Financial highlights

• Group like-for-like sales up 2.1% year-over-year, with positive contributions from both retail and convenience/wholesale channels.

• Underlying EBITDA at £151 million, up £10 million year-over-year, excluding the Blue Yonder incident impact.

• Achieved £56 million in cost savings during Q1, bringing cumulative savings to £668 million since program inception.

• Operating cash inflow of £20 million, up £19 million year-over-year.

• CapEx for Q1 was £58 million, down £46 million year-over-year, aligning more closely with EBITDA.

Outlook and guidance

• Q2 like-for-like sales and market share have rebounded, with availability above last year's levels.

• Cost savings target raised to £1 billion in the medium term, with the remaining £32 million of the original £700 million target expected in Q2.

• CapEx guidance for the year remains at just under £400 million.

• Working capital improvement of at least £50 million expected in FY 2025.