Morrisons Records ‘Resilient’ Annual Results as Festive Sales Rise

Why It Matters

The results demonstrate Morrisons’ ability to protect profitability in a pressured macro environment, reinforcing its competitive stance in the UK grocery sector. Sustained sales growth and debt reduction signal financial flexibility for further price‑cut initiatives and digital investment.

Key Takeaways

• Underlying EBITDA held at £835m despite cost pressures.
• LFL sales grew 2.8% year‑on‑year, 3.4% over Christmas.
• Online sales delivered double‑digit same‑store growth.
• More card users hit 8 million, up 11%.
• Debt fell 46% from 2022 peak, cost savings £845m.

Pulse Analysis

Morrisons’ 2025 performance underscores a broader shift in the UK grocery landscape, where retailers must balance cost inflation with consumer price sensitivity. By maintaining EBITDA at £835 million, the chain proved its operational discipline, especially as rivals grapple with margin compression. The modest 2.8% like‑for‑like sales increase, bolstered by a 3.4% holiday surge, reflects a resilient consumer base that still values value propositions amid tighter household budgets.

The company’s financial engineering played a pivotal role in offsetting external headwinds. A 46% reduction in net debt since 2022, combined with £845 million in cumulative cost‑saving initiatives, gave Morrisons the bandwidth to absorb the fallout from a Q1 cyber incident and the 2024 Budget’s cost pressures. These efficiencies not only preserved profitability but also freed cash for strategic price‑cut campaigns, such as the 2,500 reductions announced for January 2026, positioning the grocer as a price‑leader.

Looking ahead, digital acceleration and loyalty engagement are set to drive growth. Double‑digit same‑store online sales and an 11% rise in More card users to 8 million illustrate a successful pivot toward omnichannel retailing. As competition intensifies with discounters and premium players expanding their footprints, Morrisons’ blend of cost discipline, price leadership, and enhanced digital reach equips it to capture market share while delivering value to price‑conscious shoppers.