Morrisons profit hit by £290m Covid costs
Morrisons this morning announced profit dropped last year after it was hit with £290m in costs related to the coronavirus crisis.
Profit before tax dropped 62.1 per cent to £165m in the year ended 31 January, the grocer said, as the impact of repeated Covid-19 restrictions saw costs mount.
The supermarket spent an extra £99m on payroll, £68m on an employee bonus, £46m on staff and customer protection and £12m on food banks and other donations last year.
Morrisons said other costs, including extra seasonal waste and markdowns as well as additional distribution costs, amounted to £65m.
In total, it spent £10m more than previously forecast on outgoings related to the coronavirus pandemic.
Profit was also impacted by Morrisons’ decision to boost its online capacity during the pandemic, and to repay the government’s business rates relief.
Group like-for-like sales excluding fuel and VAT were up 8.6 per cent, with sales in the fourth quarter increasing nine per cent.
Total revenue increased 0.4 per cent in the year, reaching £17.6bn.