Bradford-based supermarket giant Morrisons said on Wednesday its third-quarter total sales rose 3.5% to £4 billion for the 13 weeks ended July 27, 2025.

Morrisons said group like-for-like (LFL) sales were up 3.0% and that it completed a successful refinancing and a further £261 million reduction in gross debt.

US private equity firm Clayton, Dubilier & Rice (CD&R) completed a £7 billion takeover of Morrisons in 2022.

Morrisons chief financial officer Jo Goff said: “We delivered a resilient performance in Q3 in tough market conditions and with significant external cost headwinds.

“We also made further progress with our capital structure, completing a material refinancing which further reduced gross debt, and proactively extended maturities to 2031.

“We have now repaid a total of £2.7 billion of debt since the acquisition of the business by CD&R, bringing the current debt figure down by around 43% from £6.2 billion to £3.5 billion.

“As we continue to face into significant cost headwinds we are also making good progress with our cost reduction programme and remain confident of reaching our recently increased target of £1 billion in total cost savings by the end of FY26.”

Morrisons CEO Rami Baitiéh said: “Against a background of rising inflation and challenging macroeconomic conditions like-for-like sales grew by 3.0% in our third quarter, making it our eleventh consecutive quarter of like-for-like sales growth. Our market share was stable, as it has been since the start of the year.

“Consumers are feeling the squeeze and we are continuing to work hard to help our customers make the most of stretched household budgets, staying true to Morrisons values of providing good affordable fresh food for all.

“As we do this, we are also managing the incremental impact of the Autumn budget and other Government legislation, which has created significant cost headwinds, some of which were unexpected at the start of the financial year.

“In Q4 inflation has increased further and we are adapting and adjusting to make sure we continue to offer the best value – cutting prices for all customers, tailoring promotions and offering More Card customers even better rewards for their loyalty.

“Last week we cut prices on 650 everyday items and this week we launched over 400 new products as part of our
biggest Fresh range launch for a decade. All of this will help Morrisons customers make their hard earned money go further as we head towards the peak Christmas trading period.”