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Morrisons’ (MRW) pre tax underlying profit fell by 27% to hit analysts’ expectations of £302m after a year which saw its total turnover drop by 4.1% to £16.1bn.

Underlying profit before tax pre-closure and restructuring costs for the year to 31 January was £302m and at the mid-point of its £295m-£310m guided range.

Like-for-like sales excluding-fuel and VAT was 2% for the year, but Morrisons’ posted improved like for likes in the second half of the year with fourth quarter like for likes up 0.1% despite deflation running at over 3%.

Pre-tax profit was £217m after last year’s heavy loss of £792m.

Chairman Andrew Higginson said: “”I am delighted that the reshaping of the board and executive committee is now complete. The Morrisons team now comprises a wealth of internal and external talent with the experience to deliver the turnaround. “The team made good progress during the year, with lower debt once again a highlight. We are on track to deliver improved future profits and returns for shareholders.”

Chief exec David Potts added: “”By improving the shopping trip for customers, we have started the journey to turnaround the business and make our supermarkets strong. Our listening programme is informing and shaping the six priorities that are now driving the improvements that customers are noticing.

Morrisons said during 2016/17, we expect to realise the remainder of its £1bn three-year cost savings target, but “the turnaround will take time and will continue to require sustained investment in the proposition”.

Morrisons shares have eased just 0.1% to 201.7p after this morning’s results.

Morning update

On a busy morning on the markets, we have updates from alcohol producers C&C Group and Stock Spirits

C&C Group (CCR) has issued a trading update for the 12 months to 29 February ahead of its full year results being announced on 11 May. Group operating profit is expected to be in the region of €103m and trading in the last quarter of the year “provides grounds for optimism”. C&C said it is confident in the earnings prospects of the Group in FY17.

Trading picked up in the last quarter in Scotland as the impact of tighter drink driving legislation in December 2014 fell out of the comparatives. The cider category in Ireland continues to lose share to other long alcohol drinks and the Bulmers brand has ceded ground to the distribution build of new arrivals. However, C&C said compelling rate of sale data for Bulmers should prove to be a key feature in performance stabilization in the full year 2017.

C&C also announced today that its relationship with Pabst Brewing Company will be further extended through the appointment of C&C as exclusive distributor for the Pabst portfolio in the UK and Ireland.

Stock Spirits (STCK), the Central and Eastern European branded spirits producer, has announced its results for the year ended 31 December 2015 . Total revenues were down from €292.7m to €262.6m and operating profit decreased 22.3% from €53.6m to €41.7m. Profit after tax dropped to €19.4m from €35.8m.

Chris Heath, CEO of Stock Spirits Group, commented: “2015 saw another year of disruption in the Polish market and I am personally very disappointed that we had to issue revised profit guidance in November 2015. Our team in Poland have worked incredibly hard to put in place the necessary building blocks to return the business to growth and I acknowledge their hard work and commitment during this difficult period. In other markets, I am very pleased with the results we achieved in 2015 and it reassures me that our commercial strategy remains valid and robust. In all of our markets we achieved profit growth in the second half compared to the same period in 2014.”

Annual results from John Lewis Group (including Waitrose) will follow later this morning.

The FTSE 100 has opened down 0.1% to 6,139.4pts this morning.

C&C Group has jumped 3.6% to €3.63 this morning, while Stock Spirits is down 3.9% to 142.5p.

Sainsbury’s (SBRY) and Tesco (TSCO) are both up after Morrisons’ better fourth quarter sales boosted the wider sector. Sainsbury’s is up 0.8% to 269.9p and Tesco is up 0.8% to 196.7p.

Yesterday in the City

The FTSE 100 managed to shrug off another stock market sell-off in China to end the day 0.3% up to 6,146.3pts.

Morrisons was one of the sector’s few significant fallers, dropping 1.3% to 199.95p ahead of its annual results this morning.

Also falling again was Poundland (PNLD), down 2.6% to 165.8p, Greggs (GRG), down 2.9% to 1,070p and Greene King (GNK), down 3.4% to 856.4p.

However, most FTSE 100 grocery and fmcg firms had a better day, with Reckitt Benckiser (RB) up 1.2% to 6,547.2p and Marks & Spencer (MKS), up 1% to 422.7p.

Other firms on the up included Conviviality (CVR), up 2.4% to 217p, Applegren (APGN), up 1.8% to 356.3p and Ocado (OCDO), up 1.7% to 262.8p.

In France shares in French hypermarket chain Casino fell 1.2% to € 47.10 as group trading profit dropped by 35% last year as a result of cost inflation in its Brazilian business.

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