Morrisons clinches a first with Thai tie-up

Supermarkets group Morrisons on Thursday inked its first international deal, selling products wholesale to a grocery chain in Thailand.

The retailer said it will begin exporting 100 own-brand products to Big C stores in Thailand, the country’s third-biggest grocer.

Chief executive David Potts, however, played down suggestions that the move meant the business was going international amid its turnaround efforts. Barring a lone shop in Gibraltar, the retailer does not have international stores. It recently agreed to supply nine Sandpiper stores in the Channel Islands.

The grocer’s fledgling wholesale business, which supplies fresh and frozen food to convenience stores chain McColl’s and Amazon, was growing quicker than expected, it said.

Morrisons, which will become the third-biggest supermarkets group if a deal between rivals Sainsbury’s and Asda goes ahead, said its sales for the half year to August 5 were also boosted by the World Cup and warm weather.

Revenues were up 4.5% to £8.8 billion from £8.4 billion the year before. Same-store retail sales rose 2.1%, while wholesale grew 2.8%.

However, pre-tax profits fell to £142 million from £200 million, hurt by one-off costs including £33 million for restructuring its debt as well as a change in the way it estimates its stock provisions. Excluding this, underlying pre-tax profit rose 9% to £193 million.