Morrisons has recorded an uptick in like-for-like sales during the year where the grocer’s “resilience has been severely tested”.

Group like-for-like sales were up 8.6% excluding fuel and VAT, while total revenues inched up 0.4% to  £17.6bn in the 52 weeks to January 31.

These results were boosted by online, where sales tripled during the year, as online capacity increased fivefold.

However, Morrisons posted a 51% decline in profits before tax and exceptionals of £201m, including £290m in “direct Covid-19 costs to help feed the nation through the crisis”.

The grocer also agreed to repay £230m in business rates relief earlier this year, negatively impacting its profits.

Morrisons said it would have achieved a 5.6% profit growth to £431m if this repayment had not been made and that it expects profits for the next financial year to be higher.

The retailer has continued to roll out its “Morrisons on Amazon” proposition, which is now available in c.50 towns and cities. 

Morrisons’ wholesale division has also grown, supplying the new Amazon Fresh store in Ealing, along with 236 further McColl’s stores.

It has made plans to convert 300 McColl’s stores to its smaller-concept Morrisons Daily format over the next three years.

Morrisons chair Andrew Higginson said: “This has been a year where Morrisons’ resilience has been severely tested and I could not be more proud of the way the whole business has met that test. As we look forward to brighter times ahead, Morrisons is developing into a stronger, better business with deeper and closer relationships with our customers and the communities we serve.”    

Chief executive David Potts added: “Morrisons key workers have played a vital role for all our stakeholders during the pandemic, especially the most vulnerable in British society, and their achievements over the last year have been remarkable. I am delighted that we are recognising their enormous contribution by becoming the first supermarket to pay a minimum of £10 an hour to all store colleagues.

“We are also today showing our continuing gratitude and appreciation for the incredible work of other key workers in the nation, by extending our 10% discount for NHS staff for the whole of 2021.

“I’m pleased with the greater recognition, warmth and affection for the Morrisons brand from all corners of the nation, following a year like no other. We must now look forward with hope towards better times for all, and we’re confident we can take our strong momentum into the new year, targeting profit growth and significantly lower net debt during 2021/22.”