Sainsbury’s full-year retail revenue rose 4.3% to £30.0bn. Growth was driven by a 5.2% uplift in grocery sales as volumes grew ahead of the broader market. Argos sales grew at a slower pace, up 0.7%.
Retail underlying operating profit fell 1.1% to £1.0bn due to cost inflation, of which not all was passed onto customers to keep prices competitive. Within that, profits at Argos were broadly flat.
Retail free cash flow improved by 8.1% to £0.6bn. Net debt, including lease liabilities, fell from £5.8bn to £5.7bn.
Full-year guidance points to underlying operating profits of between £1.0-1.1bn (£1.1bn expected), and retail free cash flow of at least £0.5bn.
Full-year dividends rose 0.7% to 13.7p per share, and a new £0.3bn share buyback programme was announced.
The shares fell 4.7% in early trading.
Our view
HL view to follow.
J Sainsbury key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.