Morrisons reported strong Q1 FY18/19 results. Despite sequential moderation in retail business lfl growth, the incremental contribution from McColl contract (wholesale business) boosted the group’s top-line. The company is healthier today with lower leverage and a stronger balance sheet. However, the proposed Asda-Sainsbury merger might put more pressure on the retailer in the mid/long-term. Our stock recommendation remains unchanged.
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Q1 driven by Wholesale business
- Published:
24 May 2018 -
Author:
Nishant Choudhary -
Pages:
3
Morrisons reported strong Q1 FY18/19 results. Despite sequential moderation in retail business lfl growth, the incremental contribution from McColl contract (wholesale business) boosted the group’s top-line. The company is healthier today with lower leverage and a stronger balance sheet. However, the proposed Asda-Sainsbury merger might put more pressure on the retailer in the mid/long-term. Our stock recommendation remains unchanged.