Progress in year
The financial results for the 52 weeks to 22 March 2008 represent continued strong performance in line with the Making Sainsbury’s Great Again (“MSGA”) plan and completes the first stage of MSGA.
Retailing sales (inc VAT) increased by 5.8 per cent to £19,287 million (2007: £18,227 million). Underlying profit before tax was up 28.4 per cent at £488 million (2007: £380 million). Profit before tax was £479 million (2007: £477 million). Underlying basic earnings per share increased to 19.6 pence (2007: 14.7 pence), up 33.3 per cent. Basic earnings per share were 19.1 pence (2007: 19.2 pence). A final proposed dividend of 9.0 pence per share has been approved by the Board (2007: 7.35 pence) making a full year dividend of 12.0 pence per share, up 23.1 per cent year on year (2007: 9.75 pence).
|
Summary income statement for the 52 weeks to 22 March 2008 |
2008 £m |
2007 £m |
% change |
|---|---|---|---|
| Continuing operations | |||
| Sales (inc VAT) | |||
| Retailing - Supermarkets and Convenience | 19,287 | 18,227 | 5.8 |
| Financial services - Sainsbury’s Bank 1 | - | 291 | n/a |
| Total sales (inc VAT) | 19,287 | 18,518 | 4.2 |
| Sales (ex VAT) | |||
| Retailing - Supermarkets and Convenience | 17,837 | 16,860 | 5.8 |
| Financial services - Sainsbury’s Bank 1 | - | 291 | n/a |
| Total sales (ex VAT) | 17,837 | 17,151 | 4.0 |
| Underlying operating profit 2 | |||
| Retailing - Supermarkets and Convenience | 535 | 429 | 24.7 |
| Financial services - Sainsbury’s Bank 1 | - | 2 | (100.0) |
| Total underlying operating profit | 535 | 431 | 24.1 |
| Underlying net finance costs 3 | (45) | (51) | 11.8 |
| Share of post-tax loss from joint ventures 4 | (2) | – | n/a |
| Underlying profit before tax | 488 | 380 | 28.4 |
| Profit on sales of properties | 7 | 7 | 0.0 |
| Financing fair value movements | (4) | 8 | n/a |
| One-off items | (12) | 82 | n/a |
| Profit before tax | 479 | 477 | 0.4 |
| Income tax expense | (150) | (153) | 2.0 |
| Profit for the financial period | 329 | 324 | 1.5 |
| Underlying basic earnings per share | 19.6p | 14.7p | 33.3 |
| Basic earnings per share | 19.1p | 19.2p | (0.5) |
| Approved dividend per share | 12.0p | 9.75p | 23.1 |
- In 2007 Sainsbury’s Bank was fully consolidated until the Group sold five per cent of its shareholding in February 2007; thereafter it has been equity accounted as a joint venture.
- Underlying profit before tax from continuing operations before finance income and finance costs and share of post-tax profit or loss from joint ventures.
- Net finance costs pre financing fair value movements.
- 2008 includes Sainsbury’s Bank (£3 million loss) and the joint venture with Land Securities (£1 million profit).
Retailing - Supermarkets and Convenience
Retailing sales (inc VAT and fuel) increased by 5.8 per cent to £19,287 million (2007: £18,227 million) driven by good like-for-like (“LFL”) growth and new space. LFL sales (inc VAT and inc fuel) were up 4.4 per cent. LFL sales (inc VAT and ex fuel) were up 3.9 per cent, in line with the Group’s medium term planning assumption of LFL growth of between three and four per cent, and includes 0.8 per cent contributed by extensions.
The profile of the LFL (inc VAT and ex fuel) sales performance was Quarter 1: 5.1 per cent, Quarter 2: 3.1 per cent, Quarter 3: 3.7 per cent and Quarter 4: 4.1 per cent. This profile reflects strong growth in Quarter 1 and the impact of poor weather and tough comparatives in Quarter 2. Both Quarter 3 and Quarter 4 reflected good growth against a toughening consumer environment and included good Christmas and January sale periods.
Darren Shapland
Chief Financial Officer