Morrisons fell to a £1bn loss in 2023 as debt interest payments linked to its private equity takeover soared.
According to Morrisons parent company Market Topco’s accounts, the group posted a pre-tax loss of £1.1bn last year, having accumulated £735m in interest costs which were tied to external debt and inter-company loans.
The debt-financing bill was 23% higher than the £593m incurred in 2022.
The supermarket giant saw sales drop from £18.7bn in 2023 to £18.4bn, although underlying profits excluding debt interest costs, increased from £911m to £970m.
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However, fuel sales at the retailer dropped more than £560m to £3.4bn last year. Morrisons offloaded 337 petrol forecourts to fellow CD&R-owned business Motor Fuel Group (MFG) in a £2.5bn deal in January.
At the time, Morrisons CEO Rami Baitiéh said the deal will allow the supermarket a “greater focus on investment” in its core food business and promised continued “value for money” for customers.
It is also thought that funds from the disposal will allow the grocer to partially reduce some of its £5.4bn debt pile.
A Morrisons spokesperson said: “Morrisons’ financial performance highlights the progress the company has made, delivering six consecutive quarters of like-for-like growth.”
They added that “the underlying performance of the business is strong”, despite statutory profits having been affected by “a number of non-cash items”.
It comes as Morrisons has begun a consultation programme over a management restructure of its logistics network to “speed up and simplify the business”.
The proposals, which will have an impact on all seven of the supermarket’s company-run distribution centres, are understood to affect almost 300 job roles.
