NEWS RELEASE NEWS RELEASE NEWS RELEASE NEWS RELEASE
31 January 2007
Wm MORRISON SUPERMARKETS PLC
New income statement format
As previously announced, Wm Morrison Supermarkets PLC will be reformatting its Income
Statement at the time of its preliminary results announcement for the financial year ending 4
February 2007. In order to prepare for this change and in the interest of clarity, we are today
issuing a restated Income Statement for the 52 weeks ended 29 January 2006.
This change will bring the Group in line with comparable companies in the Food and Drug
Retailers sector where the practice is to show Cost of Sales and a subtotal of Gross Profit.
The Directors regard the costs of operating Morrisons’ integrated manufacturing businesses as
part of the cost of sales of the retail business and therefore these will also be incorporated in
the Cost of Sales line in the accounts.
Overview of impact on results for the 52 weeks ended 29 January 2006:
Operating profit before exceptional items unchanged.
Total exceptional items unchanged.
Raw materials subsumed into cost of sales.
Staff costs, impairment and depreciation split between cost of sales and
administrative expenses as appropriate.
Administrative expenses consist of those costs incurred centrally that do not relate
specifically to stores or the supply chain. Cost of sales consists of all other costs.
Revised income statement
52 weeks ended 29 January 2006
n costs n costs Total
£m £m £m
Turnover 12,114.8 - 12,114.8
(11,793.0) (184.8) (11,977.8
Cost of sales
Gross profit 321.8 (184.8) 137.0
Other operating income 18.5 - 18.5
Administrative expenses (236.3) (172.9) (409.2)
Profit/(loss) arising on property related 7.5 (16.7) (9.2)
Operating profit /(loss) 111.5 (374.4) (262.9)
Finance costs (73.2) - (73.2)
Finance income 21.0 - 21.0
Share of post-tax profits from BP joint venture 2.2 - 2.2
Profit /(loss) before taxation 61.5 (374.4) (312.9)
Taxation (15.6) 78.2 62.6
Profit /(loss) for the financial period 45.9 (296.2) (250.3)
Morrisons will publish its results for the 53 weeks ending 4 February 2007 on 15 March 2007.
At this time, Marc Bolland will announce the outcome of his review, including brand
development, distribution infrastructure, the role of vertical integration and IT.