Morrisons has made substantial progress in reducing its debt, achieving a near 40% cut.
- The supermarket’s debt restructuring and £200m repayment resulted in a total debt reduction of £2.4bn.
- Morrisons extended its Term Loan Facilities and Revolving Credit Facility, improving financial stability.
- The retailer’s improved credit rating reflects its reduced debt load and financial strategy.
- Recent sales figures indicate Morrisons’ strategic focus is yielding positive results.
Morrisons, a prominent supermarket chain, has achieved a significant reduction in its debt, cutting it by nearly 40%. This accomplishment is part of a comprehensive debt restructuring effort following its acquisition by Clayton, Dubilier & Rice. The restructuring included the repayment of an additional £200m, bringing Morrisons’ total debt reduction to £2.4bn.
To enhance its financial flexibility, Morrisons has extended its Term Loan Facilities from 2027 to 2030. Additionally, the supermarket has managed to reduce both the cost and overall level of its debt, which contributes to a more secure financial future. The Revolving Credit Facility has also been extended to 2030, further solidifying its financial position.
In light of these changes, credit rating agency Moody’s improved the credit rating of Morrisons’ parent company, Market Holdco 3 Limited, upgrading it from B2 to B1. This upgrade signals confidence in the grocer’s financial management and its future prospects, as Moody’s outlook shifted from ‘negative’ to ‘stable’.
Jo Goff, Morrisons’ Chief Financial Officer, expressed satisfaction with the rapid progress of the company’s deleveraging programme. Goff highlighted the reduced debt levels, stating, ‘Our debt levels are now around 40% lower than in October 2021’. Furthermore, Morrisons continues to invest in key areas such as colleague development, pricing strategies, store and logistics improvements, loyalty initiatives, and fresh food manufacturing.
The company’s strategic initiatives have shown tangible results. During the third quarter, from 29 April to 28 July, Morrisons’ sales increased by 2%, reaching nearly £4bn. This growth demonstrates the impact of its focus on commercial excellence, operational optimisation, and creating new value.
Morrisons demonstrates a robust financial recovery and strategic growth amidst its debt restructuring efforts.
