John Lewis Partnership plc annual report and accounts 2013

Group performance

In 2012/13 the Partnership traded strongly in a tough market, and achieved robust sales and profit growth. Sales at both Waitrose and John Lewis grew well ahead of their respective markets, increasing their market share.

Partnership gross sales (including VAT) were £9.54bn, an increase of £811.8m, or 9.3%, on last year. Revenue, which is adjusted for sale or return sales and excludes VAT, was £8.47bn, up by £706.9m or 9.1%.

Operating profit was £452.4m, an increase of £59.1m, or 15.0% on last year, and operating profit margin increased from 5.1% to 5.3%.

Profit before Partnership Bonus and tax was £409.6m, an increase of £55.8m, or 15.8%, on last year. As a percentage of revenue, profit before Partnership Bonus and tax increased from 4.6% to 4.8%.

These results reflect the collective hard work of our Partners who, as co-owners, each received the same percentage of annual pay as a cash bonus. Partners shared £210.8m in profit, which represents 17% of pay or the equivalent of nearly 9 weeks’ pay.

Gross sales (£m)

2009 2010 2011 2012 2013

Waitrose: 4,156 4,532 4,974 5,400 5,764

John Lewis: 2,811 2,889 3,232 3,329 3,777

Operating profit (£m) and margin (%)

2009 2010 2011 2012 2013

Operating profit: 323 390 431 393 452

Operating margin: 5.2% 5.8% 5.9% 5.1% 5.3%

Profit before Partnership Bonus and tax (£m) and margin (%)

2009 2010 2011 2012 2013

Profit: 280 307 368 354 410

Margin: 4.5% 4.6% 5.0% 4.6% 4.8%

Exceptional gain of £127.4m in respect of the transfer of Ocado shares to the pension fund: 127

Partnership Bonus

2009 2010 2011 2012 2013

Number of weeks pay: 6.8 7.8 9.4 7.3 8.8

PB rate: 13% 15% 18% 14% 17%

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