Marks and Spencer Group (LSE:MKS) said it expects profit growth to resume versus 2024-25 as it enters 2026-27 after group adjusted profit before tax fell 23.8% to £671.4m in the 52 weeks to 28 March.
Group statutory revenue was £17.3 bn, up 25.0% year on year, largely reflecting the consolidation of Ocado Retail, while statutory profit before tax fell 28.8% to £364.6m and adjusted basic earnings per share dropped to 23.8p (31.9p prior year).
Food was the standout, with sales up 7.0% to £9.7bn and adjusted operating profit of £444.5m, while Fashion, Home & Beauty sales fell 7.7% to £3.9bn with an adjusted operating profit of £213.4m and International sales declined 7.2% with adjusted operating profit of £39.1m.
The group finished the year with net funds excluding lease liabilities of £338.2m and group net debt including lease liabilities of £2,411.8m, free cash flow from operations of £131.3m (down 70.4%), and the board proposed a final dividend of 3.0p, taking the full‑year dividend to 4.2p, up 16.7%.
Adjusting items totalled a £292.1m net charge, including £131.3m of cyber‑incident costs and £100m of insurance proceeds recorded centrally, and Ocado Retail contributed c.£3.2bn of sales and an adjusted operating profit of £15.2m after consolidation.
Capital expenditure will step up to around £650m–£750m in 2026-27, with around two‑thirds targeted at Food alongside continued investment in supply chain automation, digital platforms and a pipeline of new food and full‑line stores.
"Food was our standout performer as more customers than ever chose M&S Food for its quality, innovation, and value," said Stuart Machin, chief executive.
