Morrisons has revealed lower earnings as bosses at the supermarket giant pledged to push prices lower in a bid to win back customers squeezed by the rising cost of living.

The group, which was bought by private equity giant Clayton, Dubilier & Rice (CD&R) in 2021, revealed that adjusted earnings fell by 15% to £828 million over the year to October 30.

Morrisons highlighted that the earnings performance was at the “top end” of guidance and included improved profitability in the final quarter.

Joanna Goff, chief finance officer of Morrisons, said the group has seen signs of cooling inflation and expects improved earnings next year.

“Inflation is by no means over but there are signs of steadying more recently,” she said.

“We will see cost inflation over the year still but have recognised opportunities around working capital and our cost-saving programmes which will allow us to keep improving profitability.”

Lower profits for the past year came as the retail giant recorded a 4.2% decline in group like-for-like revenues, excluding fuel.

Last year, the retailer was overtaken by discount rival Aldi as the UK’s fourth largest supermarket as customers faced the rising cost of living.

Last week, the retailer announced hundreds of price reductions following its latest investment in pricing.

David Potts, chief executive of Morrisons, said: “In a very difficult period for consumers and businesses alike, we are continuing to do everything we can to keep prices down for customers and to support our colleagues.

“As a vertically integrated retailer, we felt the impacts of last year’s racing inflation more immediately than our competitors and this did have an impact on our pricing position.

“However, since October we have executed a rolling programme of meaningful price cuts, price freezes and fuel promotions for our customers and our competitive position has considerably sharpened.”

Morrisons also promised to pump investment into the McColl’s convenience store business it bought out of administration last year.