Supermarket chain Morrisons has revealed that profits were cut by more than half over the past year after it was hit by 拢290m in pandemic-related costs.
The Bradford-based firm has told investors that profits before tax and exceptional costs slid by 50.7% to 拢201m for the year to January 31.
It said that group like-for-like sales, excluding fuel and VAT, jumped by 8.6% as it was buoyed by strong grocery demand, with 9% growth in a strong final quarter.
David Potts, chief executive of Morrisons, said: 鈥淚鈥檓 pleased with the greater recognition, warmth and affection for the Morrisons brand from all corners of the nation, following a year like no other.
鈥淲e must now look forward with hope towards better times for all, and we鈥檙e confident we can take our strong momentum into the new year, targeting profit growth and significantly lower net debt during 2021-22.鈥
Andrew Higginson, chairman of the company, said: 鈥淭his has been a year where Morrisons鈥 resilience has been severely tested and I could not be more proud of the way the whole business has met that test.
鈥淎s we look forward to brighter times ahead, Morrisons is developing into a stronger, better business with deeper and closer relationships with our customers and the communities we serve.鈥
Morrisons said it had sustained 拢290m of extra costs as a result of the pandemic, including 拢99m of extra payroll, 拢46m for staff and customer protection measures and a 拢68m staff bonus.
The company also declined the 拢230m of business rates relief it could have been due, along with most other supermarket chains.
But it said it expected profits to grow and debt to fall in the coming year, as long as there is a 鈥渁 gradual return to more normal trading conditions, no significant increases in expected direct Covid-19 costs such as elevated colleague absence, and no further restrictions such as another period of prolonged caf茅 closures.鈥
The group's total revenue for the year rose slightly to 拢17.6bn. Sales excluding sale were up 8.9% but fuel sales fell 32.1% as fewer people used their cars during various local and national lockdowns.
