Page 11ISN JUNE 2009
ISNOnline Version. www.internationalsupermarketnews.com
News
Sainsbury have released their preliminary
results for the 52 weeks to 21 March 2009
showing strong sales and profit performance
with significant growth potential. Total
sales (including VAT) were up 5.7 per cent
to �20,383 million (2008: �19,287 million)
with like for like sales growing for the fourth
consecutive year and profits also showing
good increases.
Like-for-like sales growth were Easter-ad-
justed for comparative purposes. 2008/09
included one Easter Sunday trading week.
2007/08 included one Easter Sunday trading
week and two Good Friday trading weeks, re-
sulting in Like-for-like sales (excluding fuel,
including VAT) reported as up 4.5 per cent.
The company said it's increases were as a
result of increased customer numbers and
basket growth, equating to over 18 mil-
lion customer transactions each week and a
significant improvement in customer price
perception.
Underlying profit before tax was reported
up 11.3 per cent at �543 million (2008: �488
million) however this was noted as: profit
before tax from continuing operations before
any profit or loss on sale of properties, invest-
ments and one off items were included and
showed actual profit before tax as �466 mil-
lion (2008: �479 million).
Philip Hampton, chairman, said: "This is
another good set of results for Sainsbury's
with continuing growth in sales and tight cost
control leading to further improvements in
profit. Sainsbury's is a robust business with
a strong financial position. Underlying profit
before tax for the year was up 11.3 per cent to
�543 million with underlying basic earnings
per share up 12.8 per cent to 22.1 pence. The
Board is recommending a final dividend of
9.6 pence per share, making the full year
dividend 13.2 pence, an increase of 10.0 per
cent over the previous year. This dividend is
covered 1.67 times by earnings in line with
our long-term policy of dividend cover of
between 1.50 and 1.75 times."
Justin King, chief executive, said: "Our busi-
ness is growing because we have responded
quickly and effectively to a rapidly changing
environment. Total sales for the year were up
5.7 per cent and like-forlike sales excluding
fuel were up 4.5 per cent. In addition we have
continued to drive cost efficiencies offsetting
over 75 per cent of cost inflation and deliv-
ered further profit growth.
"Fixing fundamental parts of our opera-
tion through our `Making Sainsbury's Great
Again' recovery programme has placed
the business in a strong position. Although
consumer confidence in the UK has declined
during the year, our performance improved
as a result of the strength of the Sainsbury's
brand and actions we have taken to adjust our
offer to changing customer trends.
"Sainsbury's is a long-established company
and celebrates its 140 anniversary this month.
It has a heritage of offering customers great
products at fair prices, through a variety of
economic trading periods, and we have devel-
oped our offer to compete and grow in what
has been a very challenging period for the UK
retail industry.
"Our universal customer appeal and contin-
ued investment in price and quality have been
fundamental to our growth, catering for a
range of changing customer needs and trends.
Over the past 12 months consumers have
become increasingly `savvy' and have re-
sponded to rises in the cost of living by mak-
ing significant changes to the mix of products
they buy. In an effort to manage their house-
hold budgets more tightly, people are eating
out less and cooking at home more. They are
shopping around to get the best prices and
deals but also want the best quality they can
afford and to stay true to their values.
"Sainsbury's `good, better, best' product
range hierarchy has provided customers
with the flexibility to change what they
buy, rather than where they shop. Customer
transactions have grown to over 18 million
a week and basket size has also increased.
Further improvements in service levels and
product availability have been achieved and
as customers increasingly compare the value
offered in different supermarkets they are
realising they can get both great products
and fair prices at Sainsbury's. Investment in
pricing, improved promotions and a range
of marketing activities have all combined to
significantly improve our customers' price
perception.
"We have continued to invest in our five areas
of focus, each of which has delivered over
the past year, and which provide significant
opportunities for future growth. The areas are
to build and stretch our lead in food, acceler-
ate the development of non-food ranges and
services, extend the reach of our brand via our
online and convenience offers, to grow our
store estate and actively manage our property
assets.
"Our progress in the last four years has
made the company a stronger business with
a wide customer base and universal appeal.
We are performing well and have significant
opportunities for further growth. We expect
the current economic environment to remain
challenging but our focus on doing a great job
for customers means we are well positioned
to continue our good progress."
Sainsbury's will announce its 2009/10 First
Quarter Trading Statement at 07:00 (BST) on
17 June 2009.
Sainsbury results put them in strong
position says King
120,000 colleagues will
share an annual bonus
The TU clothing range has
been bought by over 40 per
cent of customers
Sainsbury's Bank
delivering profit from
good income growth and
cost control

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