Morrisons has effectively reduced its financial debt, decreasing it by £2.4 billion.
- The restructuring process saw the total debt reduce from £6.2 billion to £3.8 billion.
- An extension of debt maturities and reduced cost contributed significantly to this reduction.
- Moody’s upgraded the credit rating of Morrisons’ parent company due to the financial improvements.
- Jo Goff highlighted the company’s focus on strengthening its operational capabilities and values.
:Morrisons successfully completed a significant debt restructuring, opting for financial strategies that reduced its debt by £2.4 billion. The total debt fell from £6.2 billion to £3.8 billion, marking a substantial improvement in the company’s financial health.
The strategic restructuring measures involved not only reducing the debt level but also extending debt maturities to 2030. This move included the extension of its Term Loan Facilities and Revolving Credit Facility, both set to mature in 2030, ensuring a longer timeframe for financial stability.
Moody’s recognised these positive changes in financial management by upgrading the credit rating of Morrisons’ parent company, Market Holdco 3 Limited, from B2 to B1. The outlook was also revised from negative to stable, acknowledging the reduced debt levels and extended maturities as markers of financial stability and improved creditworthiness.
Jo Goff, Morrisons’ Chief Financial Officer, expressed satisfaction with the rapid progress in reducing debt levels, which are now approximately 40% lower than in October 2021. Goff noted the strength of the company’s retail estate, which remains over 80% freehold, as a solid foundation for continued investment and operational progress. These efforts include enhancing staff, store logistics, a loyalty program, and fresh food manufacturing.
The supermarket chain reported a modest 2% increase in sales during the third quarter, with revenues reaching nearly £4 billion. The company’s focus on commercial excellence, operational optimisation, and the creation of new value have been pivotal in driving this growth.
Morrisons has strategically improved its financial position and operational capabilities, positioning itself strongly for future growth.
