JOHN Lewis Partnership has said that the Extended Producer Responsibility (EPR) packaging levy has ‘significantly impacted’ its first half results.
The organisation, which includes Waitrose, reported a loss before tax and exceptional items of £34 million for the first half of the year.
This was ‘significantly impacted’ by costs not present in the equivalent prior period, including £29 million incurred via the new EPR packaging levy, with the partnership taking the full annual cost in its first half results. Waitrose faced EPR costs of £22 million, whilst John Lewis’ stood at £7 million. Higher national insurance contributions were also reported to have contributed to the loss.
Elsewhere, sales grew to £6.2 billion representing a 4% increase year-on-year; customer satisfaction reached its highest recorded level; cash generated from operations stood at £177 million, representing a £30 million increase year-on-year; and investment increased to £191 million in the first half – with ‘significant’ uplift planned in the second half.
Jason Tarry, chairman of the John Lewis Partnership, said, “Our clear focus on accelerating investment in our customers and our brands is working: more customers are shopping with us, driving sales, and helping Waitrose and John Lewis outperform their markets. We achieved our highest recorded levels of positive customer satisfaction, a testament to the great service of our partners.
“The investments we are making, combined with our plans for peak trading, provide a strong foundation for the remainder of the year. While we are reporting a loss in the first half, we’re well positioned to deliver full year profit growth, which we’ll continue to invest in our customers and partners.”
