REG - Lewis(John) PLC - John Lewis Partnership plc Unaudited Results
10/03/2022 09:00
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RNS Number : 2687E Lewis(John) PLC 10 March 2022
John Lewis plc announces the unaudited results for the year ended 29 January
2022 for John Lewis Partnership plc.
John Lewis Partnership plc is the ultimate holding company of John Lewis plc.
Thursday 10 March 2022
JOHN LEWIS PARTNERSHIP UNAUDITED RESULTS
FOR THE YEAR ENDED 29 JANUARY 2022
RESULTS SUMMARY
● Profit before exceptional(( 1 (#_ftn1) )) items rebounds to £181m,
up 38% on last year.
● Loss before tax was £26m, £491m better than last year.
● Bonus of 3% awarded to Partners, equivalent to 1.5 weeks' pay.
● Partnership to pay voluntary Real Living Wage nationwide this year;
2% pay rise.
● Total Partnership sales(( 2 (#_ftn2) )) of £12.5bn, up 1%.
● John Lewis achieved its highest ever sales of £4.93bn, up 8%
like-for-like(( 3 (#_ftn3) )) on last year.
● Waitrose sales hit £7.54bn, up 1% like-for-like on last year.
Dear Partner
I want to thank you for your commitment and dedication in what has been
another tough year. With the pandemic and with so much change within our
business, I don't underestimate the personal impact and I am truly grateful.
As we head into the second year of the Partnership Plan, our five year
strategy to transform the business, we're gaining momentum in the most
competitive retail market in history. Our focus on quality, value,
sustainability and exceptional service is serving us well.
Key results
You may recall that we report our profit using two measures - before and after
exceptional items and Bonus. Measuring our profit without these items gives a
better indication of our underlying performance. Profit before Bonus, tax and
exceptional items - or 'PBTBE' - was £181m. This was £50m (38%) higher than
2020/21 and £111m (159%) better than two years ago.
When we include exceptional items (£161m) and Bonus (£46m), our loss before
tax was £26m. This was £491m (95%) better than our loss in 2020/21 (when we
had a big 'write down' in the value of our John Lewis stores) and £172m
(118%) lower than the profit two years ago, when we had a one-off benefit from
closing our defined benefit pension scheme. Our exceptional costs were mostly
restructuring costs, property lease exit costs and a small write down of John
Lewis stores.
Waitrose sales were £7.5bn, up 1% like-for-like on last year (down 1% as
reported) and up 11% like-for-like on two years ago (up 9% as reported).
John Lewis achieved the highest sales in its history, £4.9bn, which was up 8%
like-for-like on last year (4% as reported). Against two years ago, John Lewis
sales were up 10% like-for-like (2% as reported).
Reducing costs remains a key priority. We cut costs by £170m, a major factor
behind our profit growth compared to last year.
This has involved difficult decisions that have affected Partners deeply:
reducing management roles in our shops and reducing our central teams. We have
also closed eight John Lewis stores and a delivery hub. These were necessary
decisions to ensure the Partnership is sustainable in the future.
Bonus
In 2020, the Board set the minimum thresholds for paying a Bonus again: a
combination of PBTBE of £150m and debt ratio of less than 4x. We achieved
both of these targets. Given the positive performance, and the extraordinary
contribution of Partners, the Board decided to share a 3% Bonus with Partners;
while the Executive team and I are donating our Bonus to the British Red
Cross.
With our Partners, like the whole country, facing a cost of living squeeze, we
believe that this is the right time to pay the voluntary Real Living Wage,
nationwide. In addition, this year's pay review has been set at 2%, making the
total pay investment £54m (excluding Bonus, which adds a further £46m).
Outlook
We have made a good start to our Partnership Plan but are only one year
through our five year transformation. Looking ahead, we see continued
uncertainty from global events, affecting the economic environment, our
customers, Partners and society. As inflation and energy prices rise, our
customers face higher living costs. While this creates uncertainties as we
look ahead, we remain focused on investing significantly in our Partnership
Plan to transform and grow our business. In 2022/23, this will involve:
● Investing £119m in our John Lewis shops, digital services and our
distribution capabilities;
● On top of these investments, we're committing £500m to give John
Lewis customers everyday quality and value, and an improved MyJL loyalty
proposition is coming later this year;
● £55m investment to complete a further 23 major refurbishments of
Waitrose stores and £72m investment in digital services and distribution;
● Working with our Waitrose suppliers to keep prices as low as
possible and offering savings on products that customers buy the most through
the revamped MyWaitrose loyalty scheme;
● Accelerating growth in John Lewis Financial Services with a £53m
investment;
● Continuing to develop and progress our property rental proposition;
● Targeting further sustainable cost savings by year end as we become
more efficient.
This is a year of opportunity for the Partnership, despite economic headwinds.
We have come through so much already and our solidarity will continue to carry
us through. I am confident that by continuing to invest in our strategy we
will deliver for our customers, Partners, suppliers and communities.
Sharon White
Partner and Chairman
Notes
2020/21 was a 53-week year and therefore benefitted from an additional week's
trade compared to 2021/22. The impact on PBTBE is small.
A glossary of financial and non-financial terms is included at the end of
this document.
JOHN LEWIS PARTNERSHIP UNAUDITED RESULTS
FOR THE YEAR ENDED 29 JANUARY 2022 - DETAIL
Financial performance
PBTBE was £181m in the year, up £50m (38%) on 2020/21 and up £111m (159%)
on 2019/20. This is the highest PBTBE for the Partnership since 2017/18. Our
loss before tax was £26m. This was £491m (95%) better than 2020/21 and
£172m (118%) lower than the profit two years ago.
Click or paste the following link into your web browser to view the graph
titled 'Profit before Partnership Bonus, tax and exceptionals (£m)'. Refer to
page 4 for this graph.
http://www.rns-pdf.londonstockexchange.com/rns/2687E_1-2022-3-9.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2687E_1-2022-3-9.pdf)
Note: The chart shows our Profit/(loss) before Partnership Bonus, tax and
exceptionals since 2017/18, with 2019/20 shown twice as that is the year we
adopted IFRS 16 (lease accounting standard) which reduced our profits that
year by £53m. The period from 2017/18 to 2019/20 is shown before the adoption
of IFRS 16, and the periods 2019/20 to 2021/22 are shown after the adoption of
IFRS 16.
Waitrose highlights
● Waitrose sales grew 1% on a like-for-like basis (down 1% as
reported) and up 11% like-for-like compared to two years ago (9% as reported).
Waitrose had a strong Christmas period and outperformed the grocery market by
1% for the year(( 4 (#_ftn4) )), driven by online.
● Total online sales now stand at 17%, up from 14% a year ago and 5%
in 2019/20. We now have capacity for up to 280,000 waitrose.com orders per
week, up nearly 20% on last year, boosted by a new distribution centre in
Greenford.
● Our partnership with Deliveroo is available in over 150 Waitrose
stores, frequently generating weekly sales of £1m. Now trialling Deliveroo
Hop which offers delivery in as little as 10 minutes.
● We invested £90m in 18 shop refurbishments, expanded our ecomm
capacity and opened ten new Waite & Rose cafes.
● The combined strength of our two brands is being realised through 38
dedicated John Lewis spaces in Waitrose stores. We are targeting a further 49
by the end of 2022/23.
● We are further increasing the brand's reach and convenience through
new supply partnerships. Margiotta, a family business of ten stores in
Scotland, and four Alliance stores in Jersey will offer Waitrose products.
● As part of our convenience offer, 13 new Waitrose shops opened at
Shell locations, giving us 69 sites in total, and we have started rolling out
electric vehicle charging points at Waitrose stores under this partnership in
2022/23.
● In 2021, we launched more than 700 new food lines. This included
Levantine Table, the first pan-Partnership range with John Lewis and the
biggest range launch for Waitrose in 2021.
● Waitrose picked up a string of awards for the quality and provenance
of its food and wine. We were named winner of the Grocer 33 Award on 17
occasions, equalling our best ever record in 2020.
John Lewis highlights
● John Lewis sales grew by 8% like-for-like on last year (4% as
reported) and up 10% like-for-like compared to two years ago (2% as reported).
This represented record sales for the year, despite having 16 fewer stores and
the disruption of the pandemic - with John Lewis stores closed for ten weeks
of the year.
● We launched the ANYDAY range, offering value and quality, which has
attracted existing customers and over 500,000 new or reactivated customers.
Over two million customers in total shopped ANYDAY, recording sales of over
£120m, and 93% of customers have bought John Lewis products in other price
ranges.
● We introduced 230 new brands, giving customers even more choice. We
grew market share across Home and Nursery categories and had a record year for
Christmas seasonal products (up 6% on last year).
● We invested to improve the in-store experience with local store
teams deciding what works for their customers. Cambridge, Nottingham and
Chichester saw space changes, updated furniture concepts and new assortments.
Every store now has a new 'seasonal space' to showcase the best and newest
products. We'll invest to refresh more of our stores in 2022/23.
● The John Lewis App was relaunched and now accounts for 23% of online
sales, up from 16% in the previous year. Customers who shop on the App spend
more than customers using other channels.
● Our new distribution centre, Fenny Lock, will increase our online
capacity when it opens this summer.
● John Lewis Click & Collect expanded to meet demand and is now
available in over 1,000 locations.
● John Lewis Financial Services launched a new home insurance product
and we have seen good growth in the number of customers investing in our ISA
products. Our point of sale credit product has helped to generate more than
£100m retail sales since being established across JL shopping channels. In
the last quarter we have also trialled 'easier payment' solutions to further
help customers across all channels.
Our Partners
● This year, we're increasing our pay budget by £54m so we can pay
the voluntary Real Living Wage nationwide, increasing all starting rates to at
least £9.90 per hour. Partners will receive a 2% pay rise this year. Further,
a Partnership Bonus of 3% will be awarded to Partners, equivalent to 1.5
weeks' pay.
● The Partnership became the first UK retailer to announce equal
parental pay and leave and introduced two weeks' paid leave for any Partner
who experiences the loss of a pregnancy.
● In response to the impact of the national driver shortage, we
launched an LGV Driver Academy and driver apprenticeships.
● We opened our School of Service in John Lewis Stratford, which
provides Partners from both brands with the tools and training to provide
exceptional customer service in store and online.
UNDERSTANDING OUR PROFIT FOR 2021/22
The Partnership's principal internal measure of trading performance is Profit
before Partnership Bonus, tax and exceptionals (PBTBE). This comprises Trading
operating profit for our brands, combined with other operating costs managed
centrally (such as costs of our head offices, net finance costs, property
costs, depreciation and investment expenses).
Our PBTBE has been reconciled to the Partnership's statutory measure of Loss
before tax below, and the principal differences are exceptional items and
Partnership Bonus.
Trading operating profit by brand
Waitrose John Lewis
2021/22 2020/21 2019/20 % vs 20/21 % vs 19/20 2021/22 2020/21 2019/20 % vs 20/21 % vs 19/20
Total trading sales (£m) 7,536 7,595 6,917 (1)% +9% 4,926 4,722 4,830 +4% +2%
Total trading sales LFL* 7,536 7,470 6,777 +1% +11% 4,906 4,536 4,448 +8% +10%
Revenue (£m) 6,984 7,044 6,373 (1)% +10% 3,854 3,728 3,778 +3% +2%
Trading operating profit (£m) 1,020 1,145 1,063 (11)% (4)% 758 554 734 +37% +3%
Trading operating profit (%) 14% 15% 15% 15% 12% 15%
*Our LFL definition is outlined in the Glossary section
In Waitrose, Total trading sales grew by 1% like-for-like (down 1% as
reported) and up 11% like-for-like on 2019/20 (up 9% as reported). This was
because customer demand softened in the second half compared to the previous
year, as much of the UK returned to more normal shopping patterns and the
hospitality sector rebounded. Revenue declined 1% compared to last year and
was up 10% on 2019/20.
Waitrose's Trading operating profit margins have been significantly diluted by
inflationary pressures within supply chains, higher levels of absence due to
Covid and higher fulfilment costs as a result of the increased levels of
online trade.
Click or paste the following link into your web browser to view the graph
titled 'Waitrose Sales - Channel Mix. Refer to page 6 for this graph.
http://www.rns-pdf.londonstockexchange.com/rns/2687E_1-2022-3-9.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2687E_1-2022-3-9.pdf)
The combination of these factors resulted in a decline in Waitrose Trading
operating profit of £125m to £1,020m, down 11%. Our cost savings helped to
mitigate some of these pressures, with £74m of cost savings included within
the Waitrose results.
In John Lewis, we saw Total trading sales growth of 8% like-for-like (4% as
reported) as there were fewer lockdowns in 2021 than in 2020. Total sales were
up 10% like-for-like (2% as reported) on 2019/20 despite John Lewis shops
being closed for 10 weeks at the start of the financial year. Channel mix for
the year was 67% online, 33% shops, a continuation of the move online as
customer behaviour shifts. Revenue grew 3% compared to last year and was up 2%
on 2019/20.
Click or paste the following link into your web browser to view the graph
titled 'John Lewis Sales - Channel Mix'. Refer to page 7 for this graph.
http://www.rns-pdf.londonstockexchange.com/rns/2687E_1-2022-3-9.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2687E_1-2022-3-9.pdf)
Trading operating profit of £758m, up 37% on last year, reflects that margin
in John Lewis has markedly improved this year. This was due to a combination
of stronger sales, lower markdowns on sales and the mix of sales - with a
higher proportion of Fashion and Home sales in 2021/22 than the previous year
(which carry higher margins than Technology sales that were exceptionally
strong in 2020/21). John Lewis Trading operating profit includes £18m of
profit contribution from our John Lewis Financial Services business, up £6m
compared to the previous year.
Click or paste the following link into your web browser to view the graph
titled 'John Lewis Sales - Category Mix %'. Refer to page 7 for this graph.
http://www.rns-pdf.londonstockexchange.com/rns/2687E_1-2022-3-9.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2687E_1-2022-3-9.pdf)
In addition, cost savings in John Lewis contributed £34m to Trading operating
profit. Overall, these factors generated growth in Trading operating profit of
£204m, or 37%.
Year-on-year growth in PBTBE
Compared to the full year results for 2020/21, our PBTBE improvement of £50m
is due to a number of factors:
● John Lewis Trading operating profit grew by £204m and Waitrose
Trading operating profit declined by £125m. These figures include the impact
of £108m of cost savings delivered (£34m in John Lewis and £74m in
Waitrose) in the year;
● £62m of savings from other operating costs was delivered compared
to 2020/21, bringing the total cost savings delivered in 2021/22 to £170m;
● Government support was £132m lower as we received less in business
rates relief and we made no claims under the Coronavirus Job Retention Scheme
this year;
● Incremental costs of Covid were also lower this year as the demands
on social distancing, cleaning and PPE eased relative to last year, added to
the fact much of last year's social distancing measures to protect customers
and Partners remained utilised this year;
● Our PBTBE of £181m includes £58m(( 5 (#_ftn5) )) of business
rates relief this year which was fully offset by incremental costs associated
with the pandemic.
Click or paste the following link into your web browser to view the graph
titled 'Year on year profit bridge (£m)'. Refer to page 8 for this graph.
http://www.rns-pdf.londonstockexchange.com/rns/2687E_1-2022-3-9.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2687E_1-2022-3-9.pdf)
Growth in PBTBE vs 2019/20
Compared to 2019/20, our PBTBE improvement of £111m is principally due to the
following factors:
● John Lewis Trading operating profit has increased by £24m. Waitrose
Trading operating profit has declined £43m. These figures include the impact
of £108m of cost savings delivered (£34m in John Lewis and £74m in
Waitrose) in the year;
● £62m of savings from other operating costs was delivered compared
to 2019/20, bringing the total cost savings delivered in 2021/22 to £170m;
● We received business rates relief of £58m in the year, which did
not feature in 2019/20. However, this was fully offset by costs associated
with the pandemic in the year;
● Pension costs were £65m lower following the closure of our defined
benefit pension scheme in April 2020. £43m of these benefits are included in
Trading operating profit, with £22m coming through non-trading costs;
● Net investment costs are down by £7m, comprising lower depreciation
costs of £46m offset by increased running costs for new technology as we grow
our digital capability for the future.
Click or paste the following link into your web browser to view the graph
titled 'Year on 2 year profit bridge (£m)'. Refer to page 9 for this graph.
http://www.rns-pdf.londonstockexchange.com/rns/2687E_1-2022-3-9.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2687E_1-2022-3-9.pdf)
Exceptional items
During the year, we took difficult decisions to protect the long term
viability of the Partnership to transform and grow the business. We closed
eight John Lewis stores, a customer delivery hub and announced a head office
property exit in 2024, as well as recording additional impairments of John
Lewis stores. The number of head office roles has been reduced, as has the
number of managers in John Lewis and Waitrose. These have totalled a net
charge of £161m.
Cash and liquidity
We continue to manage cash prudently given the uncertain environment. It also
ensures that there is adequate funding available to withstand material
volatility in trading, particularly important to the Partnership as we do not
have access to equity markets owing to our model. Our Total liquidity at the
year end remains strong at £1.9bn, including £1.5bn cash and short-term
investments, and undrawn bank facilities of £420m. This is required to
deliver the Partnership Plan and meet our obligations. We carry £1.4bn of
Total net debts including leases and any pension deficit, with £500m of
financial borrowings due to be repaid in the next three years (£200m of bank
term loans maturing between November 2022 and December 2023 and a £300m bond
maturing in January 2025).
During the year, we repaid a £75m bank term loan and secured a new £420m
revolving credit facility, linked to our environmental targets. The financing
replaces previous facilities of £500m, which were due to expire at the end of
2022. Under the terms of the new agreement, the interest rate we pay on the
facility will vary depending on whether we achieve three environmental targets
over five years related to reducing carbon emissions, reducing food waste and
moving away from fossil fuels in our transport fleet. We will report on our
progress towards becoming more sustainable later in the spring.
Our debt ratio at the end of the year was 2.3x, improving from the previous
year's position of 3.4x. This reflects a significant improvement in our
pension deficit, our strong cash performance during the year and repayments of
debt without the need for refinancing. For 2021/22, we are reporting a pension
accounting surplus but are not including this benefit in the calculation of
Total net debts or debt ratio, where instead we prudently assume the pension
scheme is breakeven. The pension deficit we reported in both 2020/21 and
2019/20 is included in our comparatives for Total net debt and debt ratio.
2021/22 2020/21 2019/20
Total liquidity (£m) 1,931 2,019 1,416
Total net debts (£m) (1,413) (2,097) (2,436)
Debt ratio 2.3x 3.4x 3.9x
Pensions
Our accounting position reflects the gap between the market value of pension
assets held by our defined benefit scheme and our pension liabilities. At the
year end, we had an accounting pension surplus before deferred tax of £443m
(£308m post deferred tax), compared to a deficit of £647m in January 2021
(£542m post deferred tax).
The improvement of £1.1bn pre tax is due to a combination of a reduction in
the present value of pension liabilities combined with higher scheme asset
values. The valuation of liabilities has decreased as a result of higher
discount rates being used to assess present values of future payments, in line
with market projections increasing expectations of interest rate rises. Whilst
inflation projections have also increased, this is more than offset by the
increased discount rate. Our scheme asset values have increased off the back
of strong returns on investments this year.
Our pension valuation is derived from a number of assumptions, any of which
can change the overall valuation substantially given the large size of the
scheme. The valuation is at a point in time, and changes in market conditions
can substantially affect this position in the future.
Click or paste the following link into your web browser to view the graph
titled 'IAS 19 Pension surplus/(deficit) before deferred tax - £m'. Refer to
page 10 for this graph.
http://www.rns-pdf.londonstockexchange.com/rns/2687E_1-2022-3-9.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2687E_1-2022-3-9.pdf)
ENQUIRIES
John Lewis Partnership
Chris Wynn, Partner & Director of Communications, 07980 242019,
chris.wynn@johnlewis.co.uk
Parveen Johal, Partner & Senior Communications Manager, 07768 568644,
parveen.johal@johnlewis.co.uk
Debt investors: Christof Nelischer, Partner & Head of Treasury,
investor.relations@johnlewis.co.uk
EXTRACT OF CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 29 JANUARY 2022 - UNAUDITED
2022 2021
£m £m
Revenue 10,838 10,772
Cost of sales (7,360) (7,409)
Gross profit 3,478 3,363
Other operating income 108 102
Operating and administrative expenses (3,468) (3,826)
of which:
Exceptional items (net) (161) (648)
Partnership Bonus (46) -
Share of profit of joint venture (net of tax) 1 1
Operating profit/(loss) 119 (360)
Finance costs (155) (169)
Finance income 10 12
Loss before tax (26) (517)
Profit before Partnership Bonus, tax and exceptional items 181 131
Reconciliation of Total trading sales to Revenue
2021/22 Waitrose John Lewis Partnership
£m £m £m
Total trading sales 7,536 4,926 12,462
Deduct:
Value added tax (439) (798) (1,237)
Sale or return and other accounting adjustments (113) (274) (387)
Revenue 6,984 3,854 10,838
2020/21 Waitrose John Lewis Partnership
£m £m £m
Total trading sales 7,595 4,722 12,317
Deduct:
Value added tax (439) (767) (1,206)
Sale or return and other accounting adjustments (112) (227) (339)
Revenue 7,044 3,728 10,772
Reconciliation of Operating profit/(loss) to PBTBE
2022 2021
£m
£m
Operating profit/(loss) 119 (360)
Add back:
Exceptional items 161 648
Partnership Bonus 46 -
Deduct:
Net finance costs (145) (157)
Profit before Partnership Bonus, tax and exceptional items 181 131
Reconciliation of Loss before tax to PBTBE
2022 2021
£m
£m
Loss before tax (26) (517)
Add back:
Exceptional items 161 648
Partnership Bonus 46 -
Profit before Partnership Bonus, tax and exceptional items 181 131
GLOSSARY OF FINANCIAL AND NON-FINANCIAL TERMS
This glossary gives an explanation of financial and non-financial terms
included in the results statement, compared to last year, i.e. January 2021.
TERM DEFINITION
Adjusted cash flow Operating profit before Partnership Bonus, exceptional items, depreciation and
amortisation, but after lease adjusted interest and tax. This measure is
important to assess our Debt ratio.
2021/22 2020/21
£m £m
Operating profit/(loss) 119 (360)
add back
Depreciation, amortisation and write-offs 487 525
Exceptional items 161 648
Partnership Bonus 46 -
less
Lease adjusted interest (144) (149)
Tax (58) (40)
Adjusted cash flow 611 624
Capital investment Cash outflows in relation to additions to tangible assets (property, plant and
equipment), and intangible assets (IT software) recognised on the balance
sheet.
Debt ratio Comparison of our Total net debts to Adjusted cash flow. This measure is
important as it provides an indication of our ability to repay our debts.
2021/22 2020/21
£m £m
Total net debts 1,413 2,097
Adjusted cash flow 611 624
Debt ratio 2.3x 3.4x
Exceptional items Items of income and/or expense which are significant by virtue of their size
and nature are presented as exceptional items. The separate reporting of
exceptional items helps to provide an indication of the Partnership's
underlying business performance.
Investment Total investment spend includes capital investment, revenue investment,
restructuring and redundancy costs, and lease disposal costs.
Like-for-like (LFL) sales Comparison of sales between two periods in time (e.g. this year to last year),
removing the impact of shop openings and closures and the impact of a 53rd
week for 2020/21. Waitrose like-for-like sales excludes fuel.
PB Partnership Bonus
Profit before Partnership Bonus, tax and exceptional items Profit before Partnership Bonus, tax and exceptional items. This measure is
important as it allows for a comparison of underlying profit performance.
(PBTBE)
2021/22 2020/21
£m £m
PBTBE 181 131
Exceptional items (161) (648)
Partnership Bonus (46) -
Loss before tax (26) (517)
Revenue investment Investment spend recognised directly in the income statement.
Total liquidity The cash, short term investments and undrawn committed credit facilities we
have available to us, which we can use to settle liabilities as they fall due.
Total net debts The Partnership's borrowings and overdrafts, lease liabilities, derivative
financial instruments and IAS 19 pension deficit (net of deferred tax), less
any liquid cash, short-term deposits and investments.
2021/22 2020/21
£m £m
Borrowings and overdrafts (815) (904)
Derivative financial instruments (1) (16)
Pension deficit (after deferred tax)* - (542)
Lease liabilities (1,988) (2,037)
Liquid cash, short-term deposits and investments 1,391 1,402
Total net debts (1,413) (2,097)
*For 2021/22, we are reporting a pension accounting surplus. For the
calculation of Total net debts, we report £nil where there is a post tax
surplus.
Total trading sales Total trading sales represents the full customer sales value, including VAT,
that is used to assess ongoing sales performance. It is before adjustment for
sale or return sales and other accounting adjustments. A reconciliation
between Total trading sales and Revenue is provided above.
Trading operating profit Trading operating profit represents operating profits used to assess the
performance of the John Lewis and Waitrose brands and determine the allocation
of resources to them. It excludes centrally managed costs, including fixed
property costs and depreciation.
2021/22 Waitrose John Lewis Partnership
£m £m £m
Trading operating profit 1,020 758 1,778
Centrally managed costs incl property (946)
Depreciation and amortisation (506)
Net finance costs (145)
PBTBE 181
Exceptional items (161)
Partnership Bonus (46)
Loss before tax (26)
2020/21 Waitrose John Lewis Partnership
£m £m £m
Trading operating profit 1,145 554 1,699
Centrally managed costs incl property (901)
Depreciation and amortisation (510)
Net finance costs (157)
PBTBE 131
Exceptional items (648)
Loss before tax (517)
Trading operating profit % Trading operating profit divided by Total trading sales.
Capital investment
Cash outflows in relation to additions to tangible assets (property, plant and
equipment), and intangible assets (IT software) recognised on the balance
sheet.
Debt ratio
Comparison of our Total net debts to Adjusted cash flow. This measure is
important as it provides an indication of our ability to repay our debts.
2021/22 2020/21
£m £m
Total net debts 1,413 2,097
Adjusted cash flow 611 624
Debt ratio 2.3x 3.4x
Exceptional items
Items of income and/or expense which are significant by virtue of their size
and nature are presented as exceptional items. The separate reporting of
exceptional items helps to provide an indication of the Partnership's
underlying business performance.
Investment
Total investment spend includes capital investment, revenue investment,
restructuring and redundancy costs, and lease disposal costs.
Like-for-like (LFL) sales
Comparison of sales between two periods in time (e.g. this year to last year),
removing the impact of shop openings and closures and the impact of a 53rd
week for 2020/21. Waitrose like-for-like sales excludes fuel.
PB
Partnership Bonus
Profit before Partnership Bonus, tax and exceptional items
(PBTBE)
Profit before Partnership Bonus, tax and exceptional items. This measure is
important as it allows for a comparison of underlying profit performance.
2021/22 2020/21
£m £m
PBTBE 181 131
Exceptional items (161) (648)
Partnership Bonus (46) -
Loss before tax (26) (517)
Revenue investment
Investment spend recognised directly in the income statement.
Total liquidity
The cash, short term investments and undrawn committed credit facilities we
have available to us, which we can use to settle liabilities as they fall due.
Total net debts
The Partnership's borrowings and overdrafts, lease liabilities, derivative
financial instruments and IAS 19 pension deficit (net of deferred tax), less
any liquid cash, short-term deposits and investments.
2021/22 2020/21
£m £m
Borrowings and overdrafts (815) (904)
Derivative financial instruments (1) (16)
Pension deficit (after deferred tax)* - (542)
Lease liabilities (1,988) (2,037)
Liquid cash, short-term deposits and investments 1,391 1,402
Total net debts (1,413) (2,097)
*For 2021/22, we are reporting a pension accounting surplus. For the
calculation of Total net debts, we report £nil where there is a post tax
surplus.
Total trading sales
Total trading sales represents the full customer sales value, including VAT,
that is used to assess ongoing sales performance. It is before adjustment for
sale or return sales and other accounting adjustments. A reconciliation
between Total trading sales and Revenue is provided above.
Trading operating profit
Trading operating profit represents operating profits used to assess the
performance of the John Lewis and Waitrose brands and determine the allocation
of resources to them. It excludes centrally managed costs, including fixed
property costs and depreciation.
2021/22 Waitrose John Lewis Partnership
£m £m £m
Trading operating profit 1,020 758 1,778
Centrally managed costs incl property (946)
Depreciation and amortisation (506)
Net finance costs (145)
PBTBE 181
Exceptional items (161)
Partnership Bonus (46)
Loss before tax (26)
2020/21 Waitrose John Lewis Partnership
£m £m £m
Trading operating profit 1,145 554 1,699
Centrally managed costs incl property (901)
Depreciation and amortisation (510)
Net finance costs (157)
PBTBE 131
Exceptional items (648)
Loss before tax (517)
Trading operating profit %
Trading operating profit divided by Total trading sales.
(( 1 (#_ftnref1) )) Profit before Partnership Bonus, tax and exceptional
items (PBTBE)
(( 2 (#_ftnref2) )) All references to sales are Total trading sales which
includes VAT, sale or return and other accounting adjustments
(( 3 (#_ftnref3) )) We report sales using two measures: as reported and
like-for-like. 'As reported' is the comparison between the statutory balances
for two periods of time (e.g. this year to last year). 'Like-for-like' sales
are the 'as reported' sales after adjustments to remove the impact of shop
openings and closures and the impact of a 53rd week for 2020/21. Waitrose
like-for-like sales excludes fuel. Like-for-like sales gives a better
comparison of our underlying performance
(( 4 (#_ftnref4) )) Source data: Kantar sales data February 2020 to January
2022
(( 5 (#_ftnref5) )) Rates relief in the first half of the year: £23m in the
Government's original scheme and £35m in the extension of the scheme
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