Issued: 22nd May 2012
MARKS AND SPENCER GROUP PLC FULL YEAR RESULTS 2011/12 - 52 WEEKS ENDED 31 MARCH 2012 Marks & Spencer performed well in a challenging economic environment and made good progress in delivering our strategy
Final results: • • • • • • • • • Group sales up 2.0% at £9.9bn Total UK sales +1.5%: Food +3.9%; General Merchandise -0.9% (Clothing +0.2%, Home -10.0%) Like-for-like UK sales +0.3%: Food +2.1%; General Merchandise -1.8% International sales +5.8% Multi-channel sales +18% Underlying profit before tax1 £705.9m (last year £714.3m) Underlying basic earnings per share1 34.9p (last year 34.8p) Full year dividend 17.0p per share (last year 17.0p) Net debt £1.86bn (last year £1.90bn)
Statutory results: • • Profit before tax £658.0m (last year £780.6m) Basic earnings per share 32.5p (last year 38.8p)
Marc Bolland, Chief Executive, said: “Marks & Spencer performed well in a challenging economic environment, growing group sales by 2% and holding market share. We also made good progress with our strategic plans. “We managed the business prudently with tight control of costs and capital investment, delivering earnings in line with last year, and substantial efficiency savings in our capital investment plans.
“Whilst the economic environment has deteriorated since we first set out our strategic plans, we have made significant progress. Our UK pilot stores are delivering good results, which has given us the confidence to launch phase two of the programme. We are well on track to become a truly international multi-channel retailer. By the end of this year we will be transacting from 10 websites worldwide and opening around 100 international stores per year.” Robert Swannell, Chairman said: “We have a clear strategy for the business. We remain focused on delivering this strategy effectively and efficiently. “In line with the dividend policy set out last year, the Board is recommending a final dividend of 10.8p per share, resulting in an unchanged full year dividend of 17p per share.” Operational highlights: • • • • • • Maintained market share2 in Clothing and Food Managed our operating cost base tightly Overall £300m saving in capital investment over three years Strong LFL growth in key strategic International markets Food availability up 2%, net waste down 10% Good progress with supply chain and IT programme implementation
Pilot stores • • • Pilot stores delivering 2.5% sales uplift and 13% IRR Strong customer feedback Phase two launches today including new Beauty department
Progress against the three year plan • • • • New ‘Only at Your M&S’ ranges introduced including exclusive collaborations with Conran and Richard James Store segmentation model completed; roll-out by mid 2013 Selective new space additions planned with focus on Shop Your Way M&S brand and all clothing sub-brands re-launched; roll-out by mid 2013 Delivered more choice in GM through new fast fashion collections 2
New home concept developed; rolling out from Q2 Reinforced Food specialist positioning through innovation with 1,900 new lines and 100 international food brands Enabled fuller Food shop with increase in SKUs from 6,000 to 7,000 37 new international stores opened; 100 openings per year planned going forward International websites launched in France and Republic of Ireland; 10 websites in place by the end of the year
We will update on our first quarter sales on 10 July 2012. Underlying results are consistent with how the business is measured internally. Adjustments to derive underlying profit include profit and loss on property disposals, one-off impairment charges, fair value movements on financial instruments and embedded derivatives, one-off pension credits and strategic programme costs which are not considered normal operating costs of the business. 1
Kantar Worldpanel 52 weeks ended 15 April 2012: Clothing value share 11.7%; Food and Drink share 3.8% 2
2011/12 full year...
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