DJ Morrisons FY Profit Guidance Is Likely to Cheer Bidders -- Market Talk
0806 GMT - Wm. Morrison Supermarkets shares edge 0.1% higher after the U.K. grocer reported lower 1H pretax profit and warned of potentially sustained supply-chain cost increases. While Morrisons faces competing takeover bids and is limited in what it can say about prospects, it has reiterated a 2021/22 pretax profit expectation of over GBP431 million, which will please prospective buyers, Quilter Cheviot head of equity research Chris Beckett says. "That said, the company is experiencing cost pressures across its supply chain, but expects to 'mitigate' many of them and to contribute to industry-wide price increases during the second half," Beckett says. "With uncertainty surrounding the takeover yet to be resolved, shareholders would be minded to hold until an outcome is reached," he says. (philip.waller@wsj.com)
(END) Dow Jones Newswires
September 09, 2021 04:06 ET (08:06 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.