UK's Sainsbury interim sales ex-fuel rise on grocery volume growth

By Reuters News


Overview

  • UK supermarket chain's interim revenue ex-fuel rose 2.6% yr/yr on continued grocery volume growth

  • Underlying basic EPS for the period rose 10.4% yr/yr

  • Company completed £200 mln of planned £300 mln share buyback, remainder to finish in H2


Outlook

  • Sainsbury raises FY underlying operating profit guidance to £1,025 mln-£1,065 mln from £965 mln-£1,065 mln (continuing ops)

  • Company continues to expect FY free cash flow of more than £500 mln

  • Sainsbury expects UK grocery market to remain highly competitive in H2


Result Drivers

  • GROCERY VOLUME GROWTH - Co said continued grocery volume growth drove sales, with customers choosing Sainsbury's for value and quality

  • VALUE INITIATIVES - Co attributed performance to Nectar Prices and Aldi Price Match, helping customers save and inflating behind the market

  • PRODUCT INNOVATION - Co said expanded ranges and new products, including Taste the Difference sales up over 6%, supported growth


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 LFL Sales Growth Ex. Fuel

1.90%


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the food retail & distribution peer group is "buy."

  • Wall Street's median 12-month price target for J Sainsbury PLC is GBp357.50, about 0.7% below its October 21 closing price of GBp360.00

  • The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago


Reuters Recommended Reads

  • Oct 20 - Wickes' third-quarter sales climb as low-price strategy draws shoppers

  • Oct 21 - UK's Domino's sales growth slows from previous quarter, shares fall

  • Oct 21 - Halfords falls 10% after holding annual outlook despite strong first half


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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