Wm Morrison Supermarkets (WMS) Q2 2025 earnings summary

Executive summary

• Q2 covered the 13 weeks to April 27, including Easter, with a continued subdued consumer environment and inflationary pressures.

• Like-for-like sales rose 3.9% in Q2 2025, nearly doubling from Q1, marking the tenth consecutive quarter of growth.

• Total sales increased 4.2% to £3.9 billion for the 13 weeks ended 27 April 2025.

• Strategic focus on value, own brand, loyalty, and operational efficiency, with new senior hires and ongoing modernization initiatives.

• Business rebounded from the Blue Yonder cyber attack in November 2024, with strong operational recovery and strengthened controls.

Financial highlights

• Q2 sales reached £3.9 billion, up 4.2% year-over-year.

• Underlying EBITDA was £193 million in Q2, up £13 million or 7.2% year-over-year, with a margin rate of 4.9%.

• Underlying EBITDA for H1 up 7.2% to £344 million year-over-year.

• Free cash flow for Q2 was £113 million, £24 million higher year-over-year.

• Achieved £58 million in cost savings during the quarter, surpassing the initial £700 million target.

Outlook and guidance

• Cost-saving target increased to £1 billion to be delivered by end of FY2026, with remaining savings expected over the next 18 months.

• Working capital improvement target raised to £600 million over the midterm.

• CapEx guidance for FY2025 set at £350–400 million, focusing on capital-light channels.

• Continued expansion planned in the convenience segment, with potential for hundreds more franchise-owned stores.

• Ambition remains to grow underlying EBITDA year-over-year, mindful of external headwinds.