Waitrose results reported

Waitrose’s results for the year ended 26 January 2008 have highlighted the following:

• Sales up £251.6m, 6.8%, to just under £4.0bn
• Operating profit (excluding property profits) up £38.3m, 22.0%, to £212.1m; including property, operating profits up £43.8m, 24.8%, to £220.7m
• Like-for-like growth of 3.6% (excluding petrol)
• Market share level at 3.9%
• Operating margin up 67 basis points to 5.4% (excluding property profits)

The company commented: " Waitrose sales have grown by 47% in four years with our market share increasing each year to our current level of 3.9%. Our share of the UK organics market stands at over 18%, while our market share for Fairtrade items is 8.6%, with an associated increase in sales in this area of 16.3% year on year, significantly in excess of growth in the overall Fairtrade market.

"Product quality is key to our success. Waitrose products won 13 out of the 18 Q Industry Awards, where products are 'blind tasted'. Another notable success was our own-label champagne, which was one of only two products to achieve a top five star rating in a taste test of 146 labels by Decanter Magazine , eclipsing many illustrious brands. Our animal welfare credentials were recognised by the RSPCA with the title of Supermarket of the Year in the RSPCA Good Business Awards."

"Our achievements in product quality are directly related to our long-term relationships with farmers and suppliers and our commitment to support British Farming. In the face of challenges like foot-and-mouth disease and bluetongue, our supply chain was robust with excellent availability. Our dairy farmers were able to invest in their business at a rate that was double the national average, while new base level payments, offering a minimum payment for beef and lamb producers, protected our farmers against market volatility.

"Distinctive service also played a key part in driving sales. We increased the number of specialists in meat, fish and wine in our shops to over 800, with a further 190 in training. This success was confirmed by Waitrose being ranked as customers' favourite grocer by both Which? and Verdict independent surveys.

"Further expansion has taken place this last year with acquisitions at Harborne and Christchurch, and the opening of new shops in Cheadle Hulme, Rickmansworth, and two relocations, in Windsor and from Birch Hill to Sandhurst, both increasing our selling space.

"We have also redesigned our Marylebone and John Barnes (Finchley Road) shops with an improved layout and product range to better meet the needs of London shoppers. Waitrose.com, our online presence, has been refreshed and relaunched.

"Despite this rapid pace of development, we have continued to invest in price. In spite of this investment, operating profit before property gains increased significantly by 22.0%, or £38.3m, compared with 2006/07."