Wm Morrison Supermarkets (WMS) Q3 2025 earnings summary

Executive summary

• Q3 2025 covered a 13-week period ending 27 July 2025, with subdued consumer sentiment and rising food price inflation impacting shopping habits and market volumes.

• Like-for-like sales grew 3%, marking the 11th consecutive quarter of growth, and market share was maintained despite significant inflationary headwinds.

• Total sales rose 3.5% to £4.0 billion for Q3.

• Strategic initiatives included increased loyalty activity, price cuts, digital ecosystem expansion, and the rollout of new in-store concepts and product ranges, including over 400 new Fresh products.

Financial highlights

• Q3 sales reached £4 billion, up 3.5% year-over-year, with group like-for-like sales up 3%.

• Underlying EBITDA was £239 million, flat year-on-year, with a margin rate of 6%.

• £63 million in cost savings delivered during the period.

• Operating cash inflow was £9 million; free cash flow was an outflow of £107 million.

• CapEx for Q3 was £75 million, with full-year CapEx expected around £330 million.

Outlook and guidance

• Market conditions are expected to remain challenging in Q4, with persistent inflation and subdued consumer sentiment.

• Further price reductions, range improvements, and loyalty discounts are planned to support customers.

• Confident in achieving £1 billion in total cost savings by end of FY26.

• CapEx for FY25 is expected to be in line with FY24, with a slight increase to £350–375 million projected for next year.

• Working capital is expected to be positive for the full year, with Q3 outflow reversing in Q4.