Sainsbury’s, the UK supermarket chain, saw a 6.8% increase in retail sales for the fiscal year 2023/2024, reaching £30.61 billion ($38.24 billion) compared with £28.66 billion in FY 2022/2023.
The company’s grocery sector spearheaded growth with a 9.4% increase in sales, while general merchandise saw a modest 1.2% rise. Conversely, clothing sales witnessed a 6.4% decline over the year.
The retailer’s underlying operating profit for the 52 weeks ending on March 2, 2024, stood at £966 million, reflecting a 4.3% increase from £926 million in the previous year.
This profit surge was fueled by the growth in grocery profits and cost savings, although it was partly counterbalanced by weaker General Merchandise profits.
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Sainsbury’s underlying profit before tax reached £701 million for FY 2023/24, marking a marginal 1.6% increase from £690 million in 2022/2023.
However, the statutory profit before tax fell by 15.3% to £277 million from £327 million a year earlier.
The basic earnings per share for the fiscal year were 5.9p, marking a 34.4% decline from 9.0p in 2022/2023.
The company managed to reduce its net debt, including leases, by £790 million to £5,554 million through robust cash generation and a significant property transaction.
Sainsbury’s CEO Simon Roberts emphasized, “We committed to reinstating food as the focal point of Sainsbury’s, and we’ve delivered on that promise. Our food business is performing exceptionally well. With a winning blend of value and quality, we’re attracting customers from across our main competitors, leading to consistent growth in volume market share. More customers are choosing us for their regular shopping needs as well as special occasions.”
The retailer anticipates robust profit growth in the upcoming year and aims to surpass market growth in grocery volumes, capitalizing on profit expansion.
Augmented by additional contributions from Nectar and a steadfast performance from Argos, complemented by continuous cost-saving measures, Sainsbury’s foresees a retail underlying operating profit ranging from £1.01 billion to £1.060 billion, reflecting a growth of 5% to 10%.
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