Sainsbury’s reports 5.3% increase in full-year profits to £798m

Sainsburys

Sainsbury’s reports increase in profits

British supermarket chain J Sainsbury’s plc declared on Wednesday that it achieved good sales figures and a growth in profit for the 52 weeks to 15 March 2014.

According to Sainsbury’s preliminary results for the year, its underlying profit before tax was GBP798m, a rise of up 5.3% compared to GBP758m for the company’s previous fiscal year. Underlying basic earnings per share rose 6.5% to GBP0.328, in comparison to GBP0.308 a year ago.

Underlying group sales, including VAT, rose to GBP26,353m, an increase of 2.8% over the previous year’s underlying group sales of GBP25,632m. Retail sales, excluding fuel increased by 2.7% and like-for-like sales rose by 0.2%

The retail company maintained its market share of 16.8%, despite the current harsh retail environment. It also made operational cost savings of approximately GBP120m. Sainsbury’s also reduced its capital expenditure and year end net debt to GBP888m and GBP2.4bn, respectively.

Sainsbury’s added that it continues to develop new business, having opened 13 supermarkets and 91 convenience stores, as well as extending six supermarkets, in the last year. The company said it has met its target of adding one million sq ft of extra space. In addition, it acquired the remaining 50 per cent shareholding of Sainsbury’s Bank from Lloyd’s Banking Group on 31 January 2014.

David Tyler, chairman, commented: “Against a challenging backdrop, Sainsbury’s has delivered another year of improving profits, and our market share remains at its highest level for a decade.”

Tyler added: “We announced in January that Justin King will step down in July after ten years as Chief Executive. His ‘Making Sainsbury’s Great Again’ plan transformed our business and has seen Sainsbury’s consistently outperform the growth of the market. Under his leadership, customer transactions have increased by ten million a week to around 24 million, annual sales have grown by GBP10.3bn to GBP26.4bn and underlying profit before tax has trebled to GBP798m. He has been a truly exceptional leader and, on behalf of all our colleagues, I thank him for his outstanding achievements.”

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