LONDON: Marks & Spencer Group plc (M&S) announced robust financial performance for the 2024/25 fiscal year, with group revenue rising 6% to £13.8 billion and profit before tax reaching £875.5 million, a 22.2% increase. However, the retailer faces significant disruption from a recent cyberattack, which it estimates will impact profits by approximately £300 million in the coming year.
Financial Highlights
- Revenue: £13.8 billion (+6% YoY), driven by an 8.7% surge in Food sales and 3.5% growth in Fashion, Home & Beauty.
- Profit Before Tax: £875.5 million (+22.2%), though statutory profit fell 23.9% to £511.8 million due to adjusting items, including costs from the cyber incident.
- Dividend: A final dividend of 2.6p per share is proposed, bringing the full-year payout to 3.6p (+20% YoY).
- Net Funds: £437.8 million, up 858% from the prior year, reflecting strong cash flow management.
Strategic Progress
M&S’s “Reshaping for Growth” strategy delivered its third consecutive year of improved sales and market share. Key achievements include:
- Food: Volume growth of 6.7%, with market share up to 3.9%. Innovations like the “Dine In” range and price locks on staples boosted customer trust.
- Fashion, Home & Beauty: Market share rose to 10.5%, with style perceptions improving significantly. Online sales now account for 34% of the segment’s revenue.
- Store Renewal: New and refurbished stores outperformed targets, with plans to accelerate openings in 2025/26.
Cyber Incident Impact
In late April 2025, M&S suffered a “highly sophisticated” cyberattack, causing operational disruptions. While systems are being restored, the company expects a £300 million hit to 2025/26 profits, partly offset by insurance and cost controls. Chairman Archie Norman called it a “bump in the road,” expressing confidence in the company’s recovery.
Sustainability and ESG
M&S advanced its Plan A sustainability strategy, with notable progress:
- Emissions: Scope 1 and 2 emissions down 33% since 2016/17; new Science-Based Targets Initiative (SBTi) goals set for 2030.
- Waste Reduction: 101 million meals donated via Neighbourly, and 148 million plastic pieces removed from packaging.
- Community: £4.4 million raised for mental health charity YoungMinds.
Governance and Leadership
- Alison Dolan joined as CFO in January 2025, succeeding Jeremy Townsend.
- The Board, now 60% female, maintained full compliance with the UK Corporate Governance Code.
Outlook
Despite the cyberattack, CEO Stuart Machin affirmed the long-term strategy, emphasizing investments in technology, supply chain, and store rotation. The company aims to rebound stronger, leveraging its “most trusted retailer” reputation.
About Marks & Spencer:
Founded in 1884, M&S operates 1,053 UK stores and serves 32 million customers annually. Its vision centers on quality, sustainability, and trusted value.