Preliminary Results 2023/24 Introduction Financials Strategic outcomes Food First: What we've delivered Food firmly back at the heart of Sainsbury's | --- | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------------------------------|---------|-----------------------------|--------------------------|--------------|-------|-------------------------------------------|------------------|------------------------------------------------------------------| | Grocery volumes ahead of the market | ...

Financial Data and Key Metrics Changes - Statutory profit before tax decreased by 15% year-on-year, primarily due to non-cash one-off costs [7] - Retail underlying operating profit increased by 4.3% in the year, with profit growth outpacing sales growth in the second half [5][19] - Net debt-to-EBITDA reduced to 2.6 times, reflecting strong cash flow generation [8] - Retail free cash flow was £639 million, broadly flat year-on-year, exceeding the guidance range [52] Business Line Data and Key Metrics Changes - Grocery volume growth was a significant driver of retail profit growth, with expectations to continue growing ahead of the market [5][18] - General merchandise profits were weaker, impacted by seasonality and market conditions [5][10] - Financial services underlying profits fell by 37% to £29 million, primarily due to challenges in core banking products [121] Market Data and Key Metrics Changes - Gross re-sales increased by 9.4% in the year, with volume growth accelerating significantly in the second half as inflation slowed [19] - The company reported record market share gains in the food sector, with volume growth accelerating every quarter [116][117] Company Strategy and Development Direction - The company is focused on a "Food First" strategy, aiming to enhance value and quality in its offerings [116][118] - A commitment to achieving £1 billion in cost savings over the next three years has been established [120] - The company is transitioning its financial services model to rely more on third-party providers [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering the new financial year with strong momentum, expecting grocery performance to drive healthy retail operation profit growth of 5% to 10% [23][60] - The company anticipates continued challenges in the general merchandise sector due to seasonality and consumer behavior [105][106] - Management highlighted the importance of customer perception and value, indicating ongoing efforts to improve these areas [84][98] Other Important Information - The company has invested £780 million over the last three years to enhance competitiveness on price [17] - A new Nectar app is set to be rolled out later in the year to boost customer engagement [12] - The company is committed to reducing greenhouse gas emissions and has verified targets with the Science Based Targets initiative [11] Q&A Session Summary Question: What is the long-term guidance for operating leverage and profit margins? - Management indicated that they expect to drive profit leverage from sales and volume growth, with strong performance in grocery [31][32] Question: How does the company view the impact of inflation on food and general merchandise? - Management noted that inflation has come down, and they expect low single-digit inflation moving forward, with a focus on maintaining customer value [35][39] Question: What are the expectations for the financial services strategy and its evolution? - Management is currently evaluating the future shape of the financial services business, focusing on core banking products and commission-based services [41][75] Question: How is the company managing customer perception and price competitiveness? - Management believes there is still room for improvement in price perception and is actively working to enhance customer value through various initiatives [84][98] Question: What were the impacts of the recent tech incident on trading? - Management reported that a tech incident caused temporary disruptions but was resolved quickly, leading to a strong performance during the Easter period [109][110]

J. Sainsbury PLC (JSAIY) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual in ...

Marks and Spencer (LON: MKS) and Sainsbury (LON: SBRY) share prices popped sharply on Wednesday. MKS jumped by 1.65% and moved to 260p while Sainsbury soared by 2% to 270p.Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.The main reason why the two companies jumped was because of the positive outlook of the UK retail sector. In a statement, Tesco, the biggest grocery chain in the country, said that its business was doing well and that inflation was eas ...

Here are two stocks with buy rank and strong value characteristics for investors to consider today, April 9:J Sainsbury plc (JSAIY) : This diversified retail company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.9% over the last 60 days.J Sainsbury plc has a price-to-earnings ratio (P/E) of 12.45 compared with 12.90 for the industry. The company possesses a Value Scoreof A.Telenor ASA (TELNY) : This telecommunication company carries a Zack ...

Here are three stocks with buy rank and strong income characteristics for investors to consider today, April 9:Telenor ASA (TELNY) : This telecommunication company has witnessed the Zacks Consensus Estimate for its current year earnings increasing 98.6% the last 60 days.This Zacks Rank #1 company has a dividend yield of 5.4%, compared with the industry average of 0.5%.J Sainsbury plc (JSAIY) : This diversified retail company has witnessed the Zacks Consensus Estimate for its current year earnings increasing ...

Here are three stocks with buy rank and strong income characteristics for investors to consider today, March 6:Northrim BanCorp, Inc. (NRIM) : This bank holding company for Northrim Bank has witnessed the Zacks Consensus Estimate for its current year earnings increasing 7.8% the last 60 days.This Zacks Rank #1 company has a dividend yield of 4.9%, compared with the industry average of 3.3%.Reynolds Consumer Products Inc. (REYN) : This kitchenware and home products company has witnessed the Zacks Consensus E ...

Here are three stocks with buy rank and strong value characteristics for investors to consider today, March 6:Stifel Financial Corp. (SF) : This financial services and bank holding company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 5.6% over the last 60 days.Stifel Financial Corp has a price-to-earnings ratio (P/E) of 10.92 compared with 21.00 for the industry. The company possesses a Value Score of A.J Sainsbury plc (JSAIY) : This retail ...

Sainsbury’s is to cut around 1,500 roles as it starts to unroll its plan to save around £1 billion of costs. The grocer flagged its cost savings target in a strategy update on 7 February without giving any details, but today said the cuts would be at its contact centre in Widnes, in-store bakeries and local fulfilment centres. “As we move into the next phase of our strategy, we are making some difficult, but necessary decisions,” chief executive Simon Roberts said. “I know today’s news is unsettling for aff ...

J Sainsbury PLC (LSE:SBRY) shares slumped around 5% on Wednesday after the group’s new strategy update left some analysts underwhelmed due to its lack of detail. Under the plan, Sainsbury is aiming to cut costs by £1 billion within three years, while growing its food volumes. “It’s not hard to dream up such a wish list to improve the company’s fortunes,” said Russ Mould, investment director at AJ Bell. “Achieving the goal is another matter and it will cost money – something the market typically hates.” Sain ...