Britain's M&S expects 'modest' revenue growth in 2023/24

Profit fell in 2022/23 despite an 9.6% rise in revenue to 11.9 billion pounds, due to higher energy and labour costs and unhelpful currency moves. It was also dented by M&S's exit from Russia, the lack of the prior year's government support on business rates and a share of losses from its online grocery joint venture with Ocado .

British clothing and food retailer Marks & Spencer on Wednesday forecast "modest" growth in revenue in its new financial year after 2022-23 profit beat expectations and said it would resume its dividend with an interim payout in November.

For the year to April 2, M&S made a profit before tax and adjusting items of 482 million pounds ($608 million) - ahead of analysts' average forecast of 436 million pounds but down from the 523 million pounds made in 2021/22. Profit fell in 2022/23 despite an 9.6% rise in revenue to 11.9 billion pounds, due to higher energy and labour costs and unhelpful currency moves.

It was also dented by M&S's exit from Russia, the lack of the prior year's government support on business rates and a share of losses from its online grocery joint venture with Ocado . M&S said food sales increased 8.7% over the year, while clothing and home sales were up 11.5%, with its bias towards older, more affluent customers giving it some protection from an ongoing cost-of-living crisis.

It said it had made a good start to the 2023/24 year, with both food and clothing growing sales. M&S has not paid a dividend since its 2019/20 year as part of a move to protect its balance sheet during the pandemic.