M&S Full-Year Report 2023

Strong trading results

• Profit before tax & adjusting items of £482.0m (2021/22: £522.9m, including £59.8m UK business rates relief)
• Statutory profit before tax of £475.7m (2021/22: £391.7m)
• Clothing & Home sales1 up 11.5% to £3.72bn; Store sales up 14.9%, online up 4.8%; Strong growth in Click & Collect
• Clothing & Home adjusted operating profit £323.8m (2021/22: £330.7m, including £35.2m rates relief)
• Food sales up 8.7% to £7.22bn. Strong growth across core categories, hospitality and franchise
• Food adjusted operating profit £248.0m (2021/22: £277.8m, including £24.6m rates relief)
• Ocado Retail share of loss £29.5m (2021/22: share of profit £13.9m); capacity for future growth
• International constant currency sales up 11.2%; adjusted operating profit £84.8m (2021/22: £73.6m)

Growth underpinned by investment in trusted value: In recent years, Food has shifted to trusted value to broaden appeal, reducing the volume of promotions and become competitive at opening price points. At a time when customers’ focus is on the cost of living, further investment was made early in the year, which meant that the business did not pass through the full impact of cost inflation on its margins. This included:

• Sharpening the prices of over 100 ‘Remarksable value’ lines which offer M&S quality at everyday prices, implementing ‘locked prices’ across a range of c.150 everyday family favourites and moving the iconic ‘Dine-In’ offer to ‘Always On’ – offering an affordable, restaurant-quality alternative to eating out; and
• As a result, the mix of value lines increased. For instance, Remarksable sales were up 40%, and featured in over c.20% of customer baskets. Dine-In launches such as ‘steak and chips’ also drove substantial sales growth in the offer.