LONDON (dpa-AFX) - Retail major Marks and Spencer Group Plc or M&S (MAKSY.PK, MAKSF.PK, MKS.L) reported Wednesday lower profit in fiscal 2025, hurt by impairment charge, while revenues were higher than last year. The company also lifted its dividend.
Looking ahead, the company projects cyber incident reported in April to have an impact of around 300 million pounds on 2026 operating profit, before cost mitigation, insurance and trading actions.
Marks and Spencer said, 'Overall, our strategy remains the same and there is no change to our longer-term plans to reshape M&S for growth. We are confident that we will enter the second half with a strong customer proposition, returning to the performance we were delivering immediately prior to the incident and throughout 2024/25...'
In fiscal 2025, profit before tax dropped 24 percent to 511.8 million pounds from last year's 672.5 million pounds. Profit after tax dropped 31.3 percent year-over-year to 291.9 million pounds, and basic earnings per share were 14.6 pence, down 33.3 percent from last year's 21.9 pence.
The latest result was hit by 248.5 million pounds of non-cash impairment of investment in Ocado Retail Limited or ORL.
Adjusted profit before tax was 875.5 million pounds, compared to 716.4 million pounds a year ago, and was the highest in over 15 years. Adjusted basic earnings per share grew 29.7 percent to 31.9 pence from 24.6 pence a year earlier.
Revenue in the year grew 6 percent to 13.82 billion pounds from prior year's 13.04 billion pounds. Sales were 13.91 billion pounds, up 6.1 percent from 13.11 billion pounds in the prior year.
Further, the company announced an increase in the dividend of 20 percent, resulting in a proposed final dividend of 2.6 pence and a full year dividend of 3.6 pence for 2025.
M&S expects the interim dividend for 2026 to be one third of the prior year total.
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