Shares of Marks and Spencer Group Plc or M&S were gaining more than 7 percent in the morning trading in London after the retail major reported Wed
Shares of Marks and Spencer Group Plc or M&S were gaining more than 7 percent in the morning trading in London after the retail major reported Wednesday significantly higher profit and sales in its fiscal 2024. The company also announced a dividend, and said it is confident to make further progress in 2025 and beyond.
Stuart Machin, Chief Executive said, “Two years into our plan to Reshape for Growth we can see the beginnings of a new M&S. Food and Clothing & Home grew volume and value share ahead of the market and sales increased across stores and online…. However, there remains much work to do and that’s a good thing as every challenge is an opportunity for growth.”
Going ahead, the company noted that through the Reshaping M&S strategy, its focus continues to be on driving volume growth in Food and Clothing & Home to deliver the market share and margin objectives that were set at the Capital Markets Day.
The positive outlook ahead reflects the firm’s track record of delivering volume growth, market share and free cash flow, it said.
Further, M&S said it is increasing the objective for cost reduction to 500 million pounds from 400 million pounds, to be delivered by 2027/28. This will support continued delivery of its target operating margins of over 4 percent in Food and over 10 percent in Clothing & Home.
A final dividend of 2 pence per share has been declared, resulting in a full year dividend of 3 pence. The final dividend is due to be paid on July 5 to shareholders on the register of members as at close of business on May 31. The company has not paid a dividend last year.
In fiscal 2024, profit before tax increased 41.4 percent to 672.5 million pounds from 475.7 million pounds last year. Earnings per share were 20.8 pence, up from prior year’s 17.9 pence.
Profit before tax & adjusting items increased 58 percent to 716.4 million pounds from 453.3 million pounds, prior year. Adjusted earnings per share were 23.3 pence, compared to 16.4 pence a year earlier.
Adjusted operating pro?t grew 33.8 percent year-over-year to 838.6 million pounds.
For 52 weeks ended March 30, Group sales were 13.109 billion pounds, up 9.4 percent from last year’s 11.988 billion pounds. This was driven by Food sales up 13.0 percent and Clothing & Home sales up 5.3 percent.
Statutory revenue was 13.040 billion pounds, an increase of 9.3 percent from 11.931 billion pounds a year ago.
On a like-for-like basis, Food sales grew 11.3 percent and Clothing & Home sales went up 5.2 percent.
Store sales increased 4.1 percent, with a good performance in shopping centre and retail park stores. Online sales growth was 7.8 percent. The company said growth accelerated in the second half, as the effectiveness of online marketing started to improve, particularly in womenswear.
In London, Marks and Spencer shares were trading at 294.30 pence, up 7.5 percent.
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