Wm MORRISON SUPERMARKETS PLC New income statement format by xkv17320


									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
                                                       Safeway     Safeway
                                                       integration integration
                                                       &           &
                                                       conversio conversio
                                                       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.

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