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Annual Results

Sainsbury's statutory FY pretax profit, dividend fall

03 May 2017 07:23

Sainsbury has posted a fall in its FY statutory FY pretax profit and total dividend in what it says was a pivotal year.

Statutory pretax profit for the year was £503m, from a profit of £548m, with proposed FY dividend at 10.2 a share, down from 12.1p.

Group sales came in at £29.112bn, up from £25.829bn. Like-for-like sales was down 0.6% for the period, versus down 0.9% a year earlier.

"The market remains competitive and the impact of cost price pressures remains uncertain," said chief executive Mike Coupe.

"However, we are well placed to navigate the external environment and we remain focused on delivering our strategy," he said.

Coupe said Sainsbury's just finished year was a pivotal one for the company, and that it had made significant progress delivering and accelerating its strategy.

"Our food business remains resilient in a challenging market and we continue to innovate in quality and to invest in price. We are also investing in growth areas of the business to meet the changing ways that customers shop," he said.

"Sainsbury's design-led General Merchandise and Clothing both outperformed the market and we saw strong growth in Sainsbury's Groceries Online and Convenience channels," added Coupe.

He said the company was pleased with progress made since the acquisition of Argos.

"We have opened 59 Argos Digital stores in Sainsbury's supermarkets and they are performing well.

"We are therefore accelerating our plan to open a total of 250 Argos Digital stores in Sainsbury's supermarkets and will deliver our £160m EBITDA synergy target by March 2019, six months ahead of schedule."

Sainsbury's Bank had achieved an important milestone with the migration of savings customers and ATMs onto our new banking platform. "We are confident in the growth opportunities at Sainsbury's Bank and are well set to deliver strong profit growth," said Coupe.

The supermarket said it was on track to deliver its three-year £500m cost-saving programme by the end of 2017/18 and would deliver a further £500m of cost savings over three years from 2018/19.

Story provided by StockMarketWire.com

Related Company: SBRY

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