Half year results for the six months ended 31 July 2023

Gross margin % -40 basis points to 36.3% H1 22/23: 36.7% reflecting higher customer participation in promotional activity in France and Poland, higher clearance costs and stock provisions, and sales mix in Poland

Retail profit -23.0% in constant currency to £433m H1 22/23: £555m, largely reflecting lower gross profits in Poland and France, and higher operating costs* in the UK & Ireland and Poland largely due to higher pay rates and energy costs

Notwithstanding these medium-term ambitions, last year our priorities were to rebuild product availability for our customers, including through the purchase of ‘buffer’ stock, as well as managing significant input cost inflation. Managing inflation, especially in the earlier part of 2022, involved proactively purchasing stock (mainly seasonal product) ahead of forecast cost price increases

Recent geopolitical events have created uncertainty in economic markets, with higher energy prices fuelling inflation.