| Summary income statement |
2011
£m |
2010
£m |
Change
% |
| Turnover |
16,479 |
15,410 |
7 |
| Gross profit |
1,148 |
1,062 |
8 |
| Other operating income |
80 |
65 |
23 |
| Administrative expenses |
(323) |
(315) |
3 |
| Underlying operating profit |
905 |
812 |
11 |
| Pensions credit |
- |
91 |
- |
| Property transactions |
(1) |
4 |
- |
| Operating profit |
904 |
907 |
- |
| Net finance charges |
(30) |
(49) |
(39) |
| Taxation |
(242) |
(260) |
(7) |
| Profit for the period |
632 |
598 |
6 |
Our gross profit grew marginally ahead of turnover despite a higher proportion of low margin fuel sales in the mix this year. The gross profit margin of 7.0% increased by 10 bps over last year.
After cost of goods sold, the Group's two biggest costs are store wages and distribution costs. The increase in new store space opened during the year added to our total store cost base. However through continued in-store labour efficiencies we managed to deliver an overall year-on-year improvement in store labour costs relative to sales, with in-store labour productivity up 4%. Our distribution productivity, measured by cost per case, improved 3% as we benefited from our investment in improved systems and our new South East Regional Distribution Centre (RDC).
Other operating income, whilst small, grew by 23% predominantly as a result of a growth in recycling income.
Our administration expenses were up 2.5%, well below the level of profit and sales growth in the year, reflecting continued close focus on cost control.