Bradford-based supermarket group Morrisons said its first-half profit before tax rose 39.9% to £200 million on turnover up 4.8% to £8.42 billion.
But Morrisons’ shares fell more than 6% as some analysts expressed disappointment with the company’s latest like-for-like sales growth.
Morrisons chairman Andrew Higginson said: “Our seventh consecutive quarter of positive like for like means that we are able to report profit growth on growth for the first time in the turnaround.
“With good trading momentum and a strategy to build a broader, stronger Morrisons, the business is well set to continue to deliver consistent and sustainable growth for its stakeholders.”
Morrisons said that following its recently announced supply agreement with McColl’s, it expects total annualised wholesale sales to all its partners to exceed £700 million by the end of 2018.
It expects wholesale supply sales to be more than £1 billion in due course.
Morrisons CEO David Potts said: “A new Morrisons is beginning to take shape.
“The capability of the team continues to improve and we are making strong headway with our plans to Fix, Rebuild and Grow.
“Our supermarkets continue their focus on improving the customer shopping trip and, in wholesale supply, we are beginning to realise some of the opportunities that our unique team of food makers and shopkeepers bring us.”