UK supermarket group Morrisons said a halving of annual profit due largely to costs incurred during the Covid-19 pandemic was a "badge of honour" as the priority during the year had been feeding the nation.
The group said today it made profit before tax and exceptional items of £201m in the year to January 31, before a business rates payment of £230m, down from £408m in 2019-20.
"I personally wear a halving of profits as a badge of honour," Morrisons' chief executive David Potts told reporters.
"The British people have had access to food because the supermarket workers, not just Morrisons, were asked by government to be key workers and required to stay open, unlike pretty much the rest of society. Frankly we could have made no profit and it would have been a result," he said.
Morrisons, Britain's fourth biggest grocer after market leader Tesco, Sainsbury's and Asda, said that while its like-for-like sales rose 8.6% over the year, it incurred direct pandemic costs of £290m.
That reflected the cost of hiring tens of thousands of additional workers, staff sick pay and in-store measures to deal with the pandemic.
Morrisons also lost revenue from in-store cafes, which were forced to close, while demand for fuel has been subdued.
In the group's new financial year costs and cash flow comparatives ease, but those for sales get much harder.
It forecast 2021/22 profit before tax and exceptionals including business rates paid to be higher than the £431m profit achieved in 2020/21, excluding the waived rates relief.
Morrisons also expects strong free cash flow and a significant reduction in net debt.
The group is expanding its relationship with Amazon. Its "Morrisons on Amazon" service is now available in about 50 UK towns and cities, and accounts for over 10% of sales in the majority of stores where the service is offered.
There has been persistent speculation that Amazon could emerge as a possible bidder.
"We don't ever comment on matters related to mergers and acquisition," said Potts.
