Marks and Spencer reports robust half-year results with significant profit increase

Marks and Spencer Group Plc has released its financial results for the 26 weeks ended 30 September 2023, showcasing a strong first half with significant growth in profit and sales. The company reported a notable profit before tax and adjusting items of £360.2 million, a substantial increase from £205.5 million in the previous year.

Key Financial Highlights

The company’s statutory profit before tax rose to £325.6 million, compared to £208.5 million in 2022/23. This impressive growth is reflected across various segments of the business:

• Food sales surged by 14.7%, with an adjusted operating profit of £164.9 million and a margin of 4.3%.
• Clothing & Home sales saw a 5.7% increase, with an adjusted operating profit of £223.4 million and a margin of 12.1%.
• International constant currency sales rose by 3.9%, with an adjusted operating profit of £43.4 million.

Ocado Retail and Balance Sheet Strength

The company’s share of the adjusted loss in Ocado Retail was £23.4 million, a shift from the previous year’s loss share of £0.7 million. Despite this, Marks and Spencer’s balance sheet has strengthened, indicated by reduced net debt and interest costs, and the restoration of a dividend of 1p per share.

Marks and Spencer Announces Strong Financial Performance for Half-Year 2023. Photo courtesy of GianniM/Wikipedia.org.

Strategic Progress and Future Outlook

Marks and Spencer’s strategy to reshape the business is delivering results. The company has made significant strides in food volume and share, driven by value investment, product innovation, and quality upgrades. The Clothing & Home segment is building improved style and value perceptions, contributing to the overall growth.

CEO Stuart Machin commented on the company’s strategy, emphasizing the importance of trusted value and disciplined capital allocation. He highlighted the success in the Food and Clothing & Home segments and the progress in store rotation and supply chain modernization.

Looking ahead, despite potential challenges, the company remains ambitious for future growth and is focused on driving execution and pace.