M&S profits surged 75% to £360.2m in its first half as food sales jumped nearly 15%.
Adjusted operating profit at the upmarket retailer’s food business more than doubled to £164.9m.
Ocado Retail – a joint venture between M&S and Ocado Group – suffered losses of £23.4m over the period, up from the £700,000 last year.
However, Ocado sales increased 6.9% and active customers were up, partly as a result of the ‘Big Price Drop’ campaign and an increase in M&S lines available via the online grocer.
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M&S chief executive Stuart Machin said in food, the business “delivered over 500 quality upgrades and invested over £30m in price.”
Last month, it cut the price of over 200 products, lowering prices by an average of 11%, as well as having launched a price lock on 150 customer favourites.
“Our strategy to reshape M&S for growth has delivered strong results in the first half. We have maintained our relentless focus on trusted value, giving our customers exceptional quality product at the best possible price,” he added.
Machin said M&S is also planning for a positive festive trading period, and that this momentum was maintained through October “with customers responding positively to Christmas ranges”.
Looking forward, he added: “There will be challenges and headwinds in the year ahead and progress won’t be linear, but we are ambitious for future growth and are driving what is in our control.”
