M&S beats FY forecasts, to reinstate 'modest' dividend

(Sharecast News) - UK retailer Marks & Spencer delivered a forecast-busting annual profit driven by a major improvement in its food division and said it would reinstate a "modest" dividend in November.

Adjusted pre-tax profit came in at £482m, down from £522m last year, but better than expectations of £431m. The prior year's figure was also boosted by almost £60m in business rate relief.

"M&S has had a good start to the new financial year, with both food and clothing & home growing sales. While the economic outlook for consumer spending is uncertain, cost inflation remains high, and market conditions are expected to become more challenging, the strategy is beginning to deliver improved performance and there remains much within the group's control," the company said on Wednesday.

"In full-year 2024, modest growth is expected in revenues, driven by omni-channel as well as from the benefits of the accelerating store rotation plan. Further investment in quality and trusted value will be partly offset by actions to mitigate sourcing cost pressures and to reduce waste and stock loss."

Reporting by Frank Prenesti for Sharecast.com