TIDMBD45
RNS Number : 4181Z
Lewis(John)Partnership PLC
07 March 2013
Unaudited results for year to 26 January 2013
[This does not constitute a preliminary announcement]
Strict Stock Exchange Embargo, 9.30am
Thursday 7 March 2013
John Lewis Partnership plc
Results for the year ended 26 January 2013
"Long term investment drives strong performance"
Financial Highlights
The John Lewis Partnership
-- Gross sales of GBP9.54bn, up GBP811.8m, 9.3%
-- Revenue of GBP8.47bn, up GBP706.9m, 9.1%
-- Group operating profit of GBP452.4m up GBP59.1m, 15.0%
-- Profit before Partnership bonus and tax of GBP409.6m, up GBP55.8m, 15.8%
-- Partnership Bonus of GBP210.8m; 17% of salary (equal to nearly 9 weeks' pay)
-- Net debt of GBP371.9m, down GBP205.4m (35.6%)
Waitrose
-- Gross sales of GBP5.76bn, up GBP363.5m, 6.7%
-- Like-for-like sales (excluding petrol) up 3.4%
-- Revenue of GBP5.42bn, up GBP343.8m, 6.8%
-- Operating profit of GBP292.3m, up GBP31.7m, 12.2%
John Lewis
-- Gross sales of GBP3.78bn, up GBP448.3m, 13.5%
-- Like-for-like sales up 10.5%
-- Revenue of GBP3.05bn, up GBP363.1m, 13.5%
-- johnlewis.com gross sales of GBP959m, up GBP278m, 40.8%
-- Operating profit of GBP216.7m, up GBP58.8m, 37.2%
Operational Highlights
Waitrose
-- 19 new branches opened (11 supermarkets and eight convenience shops)
-- Selling space increased by 5.2%
-- 4,700 new and improved products launched
-- Online sales grew by 49%
John Lewis
-- Four new shops (one new format shop and three "John Lewis at home" shops)
-- Strong growth of johnlewis.com
-- Click & collect in all John Lewis shops and 193 Waitrose shops
-- Significant market share gains in each of our three main categories
Partnership Highlights
-- Net 3,800 new jobs created
-- Invested GBP551m in benefits to our Partners, including
Partnership Bonus, pensions, Partner discount, catering subsidy,
long service leave, leisure spending and the running of our five
holiday centres
-- GBP125m one-off additional cash contribution in January 2013 to final salary pension scheme
Charlie Mayfield, Chairman of John Lewis Partnership,
commented:
"This has been a good year for the Partnership with growth in
sales and profit above our expectations. Both Waitrose and John
Lewis gained market share for what is now the fourth consecutive
year. As a result I am delighted that 84,700 Partners will receive
a bonus of 17%, equivalent to nearly 9 weeks' pay.
We were encouraged by the acceleration in the rate of sales
growth during the year, particularly in the final quarter. Although
the market remains challenging, the Partnership has adapted quickly
and successfully and we saw the benefits this year. We have stepped
up innovation in new products, there's been a continuing focus on
value and sustained and rapid growth online. This resulted in over
1.5 million more customers choosing to shop with Waitrose or John
Lewis than last year.
We see this as a time of significant opportunity in a changing
market. Behind the scenes, therefore, there's a quiet revolution
underway in our supply chain, IT and support functions. Our
investment in these areas is up substantially and that commitment
continues into 2013. In recent years, the Partnership has
consciously invested to have the right skills, systems and
organisational structures to be able to offer customers what they
want in a fast-changing market."
Outlook 2013/14
Although the market remains subdued we see more stability in
customer demand and further opportunities to grow market share in
both John Lewis and Waitrose. We have seen a good start to 2013/14.
After five weeks, Partnership gross sales are 10.5% higher than
last year. Waitrose gross sales have increased by 8.1% (6.4%
like-for-like, excluding petrol) and John Lewis gross sales are
16.0% higher than last year (13.7% like-for-like).
We expect our sales growth to continue this year, albeit less
strongly than in 2012/13, and we are planning a significant step up
in total investment, with a particular focus on our supply chain,
technology and systems. These investments are central to our
strategy of remaining at the forefront of changes in retail today
whilst preparing the Partnership for tomorrow.
Financial Results
In 2012/13 the Partnership traded strongly in a tough market,
and achieved robust sales and profit growth. Both Waitrose and John
Lewis grew sales well ahead of their respective markets, increasing
their market share.
Partnership gross sales (inc VAT) were GBP9.54bn, an increase of
GBP811.8m, or 9.3%, on last year. Revenue, which is adjusted for
sale or return sales and excludes VAT, was GBP8.47bn, up by
GBP706.9m or 9.1%. Operating profit was GBP452.4m, an increase of
GBP59.1m, or 15.0% on last year, and operating profit margin
increased by 0.3% to 5.3%.
Profit before Partnership Bonus and tax was GBP409.6m, an
increase of GBP55.8m, or 15.8%, on last year, while cash generated
from operations grew to GBP973.9m, an increase of GBP214.8m, or
28.3%.
These results reflect the collective hard work of our Partners
who, as co-owners, will each receive the same percentage of annual
pay as a cash bonus. Partners will share GBP210.8m in profit, which
represents 17% of pay or the equivalent of nearly 9 weeks' pay.
Waitrose
Waitrose's gross sales grew strongly, up 6.7% (GBP363.5m) to
GBP5.76bn in a slow market. Like-for-like sales grew by 3.4% with a
noticeable acceleration in the second half of the year as the
impact of our investment in lower prices kicked in. This also
helped to drive volume growth in our like-for-like estate.
Operating profit grew by 12.2% to GBP292.3m.
A sustained investment in lower prices, unwavering commitment to
product quality and high standards of customer service have
resulted in Waitrose outperforming the industry for the fourth year
running with market share up from 4.7% to 4.9%.
The combination of Brand Price Match (matching Tesco's prices on
branded lines excluding promotions), at least 1,000 promotions a
week, the expansion of essential Waitrose to 1,800 lines, and
sharper own-label prices across the board created an attractive
value package, and continued to change consumers' views on
Waitrose's price position. Overall, customer transactions grew by
6.1% in the year.
In parallel with lower prices, innovation continued apace and we
introduced 4,700 new and improved products, more than ever before
in a single year - all with the same commitment to the high
standards of quality, sourcing integrity and fairness to suppliers
for which Waitrose is known. Particularly successful new lines have
been ranges of celebration cakes and desserts and the Heston from
Waitrose range of ready meals. Quality and innovation will continue
apace with 5,000 new products planned for 2013/14.
Our strategy has anticipated changing shopping patterns and
customers now choose to shop across all our formats - full weekly
shops in branches and online (including mobile), top-up shopping in
Little Waitrose shops, Click & collect purchases from Waitrose
and John Lewis picked up in our supermarkets and convenience
shops.
Waitrose.com had a very successful year with online sales
growing by 49%, compared to 19% for the online grocery market
according to Kantar Worldpanel data. The grocery service is
available from 199 branches and from the customer fulfilment centre
in Acton, West London which now handles more than 19% of all
orders. John Lewis's Click & collect is proving hugely popular
and has increased footfall in our Waitrose branches - for example,
over the Christmas period our branches handled 300,000 such
orders.
Eight Little Waitrose convenience branches and 11 new core shops
were opened in the year, which together with one closure, brings
the total estate to 290 branches. In addition we carried out major
redevelopments on our branches in Putney, Saxmundham and Bath, with
Bath doubling in size to 38,000 sq ft. Waitrose is also present in
17 Welcome Break motorway services and on two Shell forecourts.
We now have seven licensed shops in the Middle East, having
opened four more during the year. We now export Waitrose products
to more than 30 countries, with new markets in the last year
including South Korea, Taiwan, Gibraltar and Trinidad. Export sales
rose by 20% in the year.
We plan to open eight core branches, including Helensburgh, our
sixth shop in Scotland, and up to 10 Little Waitrose convenience
shops, the first of which will open in Vauxhall, London in April.
We are also planning a substantial refurbishment programme of our
existing shops.
Waitrose will open a new Regional Distribution Centre (RDC) in
Leyland, Lancashire, in summer 2013 to support expansion in the
north of England and Scotland. Recruitment for the 300 new jobs
created is already underway. We have also invested in a new
Warehouse Management System which, through increased picking
accuracy, is already leading to a significant improvement in
availability.
In the year ahead, Waitrose will further invest in customer
service with roles for 200 specialists in fresh produce and
horticulture. A further 2,000 Partners will become product advisors
in their branches.
John Lewis
John Lewis gross sales grew strongly through the year up 13.5%
(GBP448.3m) to GBP3.78bn despite a market which continued to be
challenging. Total like-for-like sales grew by 10.5%. Operating
profit grew by 37.2% to GBP216.7m.
Exciting products, knowledgeable customer service and effective
marketing, together with our commitment to be Never Knowingly
Undersold, all contributed to this success, while the brand was
given added impetus by our high profile support for London
2012.
We achieved market share gains in all three of our main
categories. Sales in Fashion increased by 9.1%, driven by a mix of
own brand, new brand acquisitions and designer collaborations. Home
saw good growth of 6.2% and John Lewis now has the second largest
home market share in the UK. Electricals and Home Technology (EHT)
grew very strongly up 28.9%, achieving our highest ever market
share positions in computers (including tablets), TVs, cameras and
both large and small electrical goods, and reflecting the trust
customers have in our price-matching position, our Partners'
product knowledge and our strong supplier relationships. In April,
John Lewis was voted 'Britain's Favourite Electricals Retailer' by
Verdict and also came top in its 'Customer Service' category.
Product innovation, quality and value at all price points were
central to success in each category. Brand partnerships in EHT, new
designer brands such as Grayers, Seasalt and Allegra Hicks in
Fashion as well as inspirational ranges from Nick Monro, Bethan
Gray and Tilly Hemingway in Home have set the pace for innovation.
In own-brand, we launched highly successful ranges such as our
designer collaboration with Alice Temperley and House, a wide
selection of home furnishings and accessories.
To make our brand more accessible, we made important steps in
giving customers a seamless, 'omni-channel' experience.
johnlewis.com gross sales were up 41% to GBP959m and the channel
now accounts for over 25% of trade. John Lewis shops gross sales
were up 6.4% with like-for-like shop sales up 2.6%. Nearly two
thirds of all transactions now involve customers visiting both
shops and online channels.
Click & collect, available in all John Lewis and 193
Waitrose outlets, is a key part of this change in shopping
behaviour and is our fastest-growing fulfilment channel. Orders
have almost doubled year-on-year, with 43% of purchases collected
from Waitrose branches.
We are also strengthening our IT and supply chain
infrastructure. Last month we successfully relaunched johnlewis.com
on a new GBP40m platform to support our online growth and have
announced investment in a new distribution complex to sit alongside
our existing operation at Magna Park.
We opened four shops in 2012; three 'at home' branches in
Newbury, Chichester and Ipswich and a new format shop in Exeter,
providing a full-line assortment in a smaller trading space. This
year we will refurbish John Lewis High Wycombe and invest in
refurbishments at John Lewis Oxford Street, Kingston and
Nottingham. We are planning two new shops in 2014 at York and
Birmingham.
Beyond our traditional products and services, John Lewis
Insurance has seen good growth in 2012/13. We have also begun a
partnership to host Kuoni travel services in our shops, and
internationally, we have developed our first collaboration with
Shinsegae, a South Korean department store. We will be launching
French and German language websites later this year to take
advantage of the two most well developed EU e-commerce markets.
Partnership Services and Corporate
Partnership Services, which was established in 2009 as the
Partnership's business services division to support John Lewis and
Waitrose, made a significant contribution to our efficiency over
the year helping to deliver benefits through better procurement of
not-for-resale goods and services, and working capital
improvements.
The cost of our process operations was held flat with
productivity improvements offsetting inflation and growth in
like-for-like transactions. The breadth of the processes managed by
Partnership Services for both Partners and suppliers continued to
increase last year to include more standardised procurement of
not-for-resale goods and services, simpler electronic invoicing,
more accurate expense management and travel management services for
Partners.
The level of investment in a number of significant
transformation programmes has increased by over GBP20m, which is
the primary factor behind the year-on-year increase in Corporate
costs. These programmes are principally within our Personnel, IT
and Partners' Counsellor's functions, and are designed to increase
both the efficiency and effectiveness of our support functions, and
are central to our move to build a more agile and adaptable
organisation.
Investment in the future
Capital spending in 2012/13 was GBP376.9m, a decrease of
GBP140.9m (27.2%). This reduction largely reflects fewer branch
openings and lower spend on refurbishments. We expect capital
spending in 2013/14 to return to 2011/12 levels.
Waitrose invested GBP198.2m, mainly on new branches opening this
year together with three extensions, branch refurbishments and
investment in the implementation of a new warehouse management
system to drive productivity in our supply chain, and also a number
of retail systems improvements to aid efficiency and enhance the
flexibility of our offer.
John Lewis invested GBP144.3m, with the mix of investment
continuing to reflect the business strategy of opening new space,
refurbishing key regional shops and investing in the IT and
distribution infrastructure to support omni-channel trading.
In addition, GBP34.4m was invested centrally, mainly in
maintaining and modernising our IT platforms, head office buildings
and residential clubs.
Financing
Net finance costs on borrowings and investments decreased by
GBP0.3m (0.5%) to GBP60.0m. After including the financing elements
of pensions and long service leave and non-cash fair value
adjustments, net finance costs increased by GBP3.3m (8.4%) to
GBP42.8m.
At 26 January 2013, net debt was GBP371.9m, a decrease of
GBP205.4m (35.6%). During the year we repaid borrowings totalling
GBP242m from available cash. In January 2013 we replaced a number
of existing bilateral borrowing facilities with a new GBP325m five
year syndicated facility, which was undrawn at year end.
Pensions
The accounting charge for pensions included within operating
profit was GBP138.1m, an increase of GBP14.1m or 11.4% on the prior
year reflecting the change in the financial assumptions and growth
in scheme membership.
The total accounting pension deficit at 26 January 2013 was
GBP822.1m, an increase of GBP184.0m (28.8%). Net of deferred tax
the deficit was GBP652.4m. The accounting valuation of pension fund
liabilities increased by GBP621.0m (19.6%) to GBP3,796.0m, while
pension fund assets increased by GBP437.0m (17.2%) to GBP2,973.9m,
including a GBP125m one-off cash contribution made by the
Partnership in January 2013.
On the actuarial funding basis used in the last valuation in
2010, we estimate that our defined benefit final salary schemes
would have ended the year with a surplus of approximately GBP280m.
The next formal valuation of the schemes will be as at 31 March
2013. Given that gilt yields are indicating lower returns in the
future, we anticipate the actuarial funding position will
weaken.
The pension is one of the most important benefits offered to
Partners, but also accounts for the greatest single investment made
each year by the Partnership. During the next year the Partnership
will be undertaking a review of the pension scheme to ensure that
it can remain fair to Partners and sustainable from a business
perspective, and doing so over this time period will allow the
opportunity to consult extensively to make sure that the changes
are right for both Partners and the Partnership.
Corporate Social Responsibility
Corporate social responsibility (CSR) has always been part of
the way we do business. Partners have continued to offer their time
to support local, regional and national initiatives that help to
build more vibrant, economically sustainable communities aligned
with the Partnership's vision to be a force for good in the
community.
We recognise that we have a vital role to play when we open new
shops, in contributing to the long-term prosperity of the local
area, socially and environmentally. When we opened John Lewis
Exeter in October 2012, innovations in cooling and lighting enabled
us to deliver a 30% reduction in CO(2) . Our buildings represent 32
out of the top 42 BREEAM (Building Research Establishment
Environmental Assessment Method) rated retail buildings. The
Partnership is the only retailer to have achieved a BREEAM
post-construction outstanding rating. As recognised by the Carbon
Trust Standard, the Partnership continues to invest in low carbon
distribution and achieved recertification in June 2012 for
continued progress in reducing operational carbon emissions.
In Waitrose, we have continued to make progress in sourcing
certified sustainable raw materials such as palm oil, timber and
fish. For example, Waitrose met its target of using sustainably
sourced palm oil in all own-brand products by the end of 2012, and
has been commended by the Roundtable on Sustainable Palm Oil (RSPO)
as the first UK retailer to use its trademark logo on products that
use palm oil in significant quantities.
John Lewis is proud to support British design and quality,
demonstrated by its launch of the 'Made in the UK' identifier.
During 2012 the number of UK suppliers increased from 132 to 156.
John Lewis also committed to educating customers to change
behaviour and encourage sustainable living. As part of our
commitment we have agreed to a trial with UK government Department
of Energy and Climate and Change (DECC) which will provide
electrical energy information labelling to show the lifetime energy
efficiency of different electrical appliances.
- ends -
Further information
John Lewis Partnership
Andrew Moys, Director of Communications 07525 272377
Citigate Dewe Rogerson
Simon Rigby / Nicola Swift 020 7638 9571
John Lewis
Helen Dickinson, Director, Communications 07785 952567
Louise Cooper, Senior Manager, Corporate, Digital & Branch PR 07808 574117
Waitrose
Christine Watts, Communications Director 07764 676414
Gill Smith, Senior Manager, Corporate PR 07887 898133
Notes to Editors
The John Lewis Partnership - The John Lewis Partnership operates
39 John Lewis shops across the UK (30 department stores and 9 John
Lewis at home), johnlewis.com, 255 Waitrose supermarkets, 35
Waitrose convenience stores, waitrose.com and business to business
contracts in the UK and abroad. The business has annual gross sales
of over GBP9.5bn. It is the UK's largest example of worker
co-ownership where all 84,700 staff are Partners in the
business.
Waitrose - Waitrose, Britain's favourite supermarket*, has 290
shops in the UK and Channel Islands and is consistently achieving
sales growth significantly ahead of the market**. Its strong
performance has been driven by the success of the essential
Waitrose range, Brand Price Match, an unmatchable top tier of
products and free delivery for online shopping, as well as a long
term commitment to sourcing the UK's finest local and regional
foods. Waitrose combines the convenience of a supermarket with the
expertise and service of a specialist shop - dedicated to offering
quality food that has been responsibly sourced combined with high
standards of customer service. www.waitrose.com
* Which? Annual Supermarket Survey 2013, Favourite Food &
Grocery Retailer at Verdict's annual Consumer Satisfaction Awards;
Favourite Supermarket at Good Housekeeping Awards
** Kantar Worldpanel
John Lewis - John Lewis, 'Britain's favourite electricals
retailer 2012'* and 'Best Multichannel Retailer 2012' **, typically
stocks more than 350,000 separate lines in its department stores.
The website stocks over 200,000 products focused on the best of
fashion, beauty, home and giftware and electrical items including
online exclusives. johnlewis.com is consistently ranked one of the
top online shopping destinations in the UK. (www.johnlewis.com).
John Lewis Insurance offers a range of comprehensive insurance
products - home, car, wedding and event, travel and pet insurance
and life cover - delivering the usual values of expertise, trust
and customer service expected from the John Lewis brand.
* Verdict Consumer Satisfaction Index, April 2012
** PayPal etail Awards 2012
John Lewis Partnership plc
UNAUDITED RESULTS FOR THE YEAR TO 26 JANUARY 2013
2012/13 2011/12 Change
GBPm GBPm %
GROSS SALES (including
VAT)
Waitrose 5,763.9 5,400.4 6.7
John Lewis 3,777.4 3,329.1 13.5
Gross sales 9,541.3 8,729.5 9.3
-------------------------------------- ----------------- -------- -------- --------
REVENUE
Waitrose 5,416.1 5,072.3 6.8
John Lewis 3,049.4 2,686.3 13.5
Revenue 8,465.5 7,758.6 9.1
------------------------------------------------------- -------- -------- --------
OPERATING PROFITS
Waitrose 292.3 260.6 12.2
John Lewis 216.7 157.9 37.2
------------------------------------------------------- -------- -------- --------
509.0
11 418.5 21.6
Corporate and other
1 (56.6) (25.2) (124.6)
------------------------------------------------------- -------- -------- --------
Operating profit 452.4 393.3 15.0
Net finance costs (42.8) (39.5) (8.4)
-------------------------------------- ----------------- -------- -------- --------
Profit before Partnership bonus
and tax 409.6 353.8 15.8
Partnership bonus (210.8) (165.2) (27.6)
-------------------------------------- ----------------- --------
Profit before tax 198.8 188.6 5.4
-------------------------------------- ----------------- -------- -------- --------
Notes
1. Corporate and other principally includes corporate and shared
service overheads, transformation costs and Partnership Services.
2. This statement does not constitute a preliminary announcement.
These results are subject to audit. The Annual Report & Accounts
for 2012/13 will be published in April.
=============================================================================================
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGMGGFNVDGFZM
Lewis Php.5%Pf (LSE:BD45)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Lewis Php.5%Pf (LSE:BD45)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
