Sainsbury’s has made good progress in the challenging economic environment, reflecting the ongoing development of its offer and increasingly universal appeal, and continuing to deliver its growth strategy, whilst benefiting from a strong and robust balance sheet.
Sales (including VAT) increased by 5.7 per cent to £20,383 million (2008: £19,287
million). Underlying profit before tax improved by 11.3 per cent to £543 million
(2008: £488 million). Profit before tax was down 2.7 per cent, at £466
million (2008: £479 million), impacted by the non-cash investment property
fair value movements of £(124) million (2008: £nil), partially offset
by
£57 million profit on property disposals (2008: £7 million). Underlying
basic earnings per share increased to 22.1 pence (2008: 19.6 pence), up 12.8 per
cent. Basic earnings per share were down 13.1 per cent, at 16.6 pence (2008: 19.1
pence) as a result of the non-cash, investment property fair value movements (which
are disallowable for tax purposes). A final dividend of
9.6 pence per share has
been recommended by the Board (2008: 9.0 pence) making a full year dividend of 13.2
pence per share, up 10.0 per cent year-on-year (2008: 12.0 pence).
|
Summary income statement for the 52 weeks to 21 March 2009 |
2009 £m |
2008 £m |
Change % |
|---|---|---|---|
| Sales (including VAT)1 | 20,383 | 19,287 | 5.7 |
| Sales (excluding VAT) | 18,911 | 17,837 | 6.0 |
| Underlying operating profit | 616 | 535 | 15.1 |
| Underlying net finance costs2 | (89) | (45) | (97.8) |
| Underlying share of post-tax profit/(loss) from joint ventures3 | 16 | (2) | n/a |
| Underlying profit before tax | 543 | 488 | 11.3 |
| Profit on sale of properties | 57 | 7 | n/a |
| Investment property fair value movements | (124) | – | n/a |
| Financing fair value movements | (10) | (4) | (150.0) |
| One-off items | - | (12) | n/a |
| Profit before tax | 466 | 479 | (2.7) |
| Income tax expense | (177) | (150) | (18.0) |
| Profit for the financial period | 289 | 329 | (12.2) |
| Underlying basic earnings per share | 22.1p | 19.6p | 12.8 |
| Basic earnings per share | 16.6p | 19.1p | (13.1) |
| Full year dividend per share | 13.2p | 12.0p | 10.0 |
- Sales (including VAT) were adversely affected by the reduction in the standard rate of VAT from 17.5 per cent to 15 per cent, effective from 1 December 2008. Sainsbury’s estimates that this diluted sales growth by circa 30 basis points in the full year, with 40 basis points in quarter 3 and 80 basis points in quarter 4.
- Net finance costs pre-financing fair value movements.
- The underlying share of post-tax results from joint ventures is stated before investment property fair value movements and financing fair value movements.
Sales (including VAT) and space
Sales (including fuel) increased by 5.7 per cent to £20,383 million (2008:
£19,287 million) through good like-for-like (“LFL”) growth and new space.
The 5.7 per cent growth includes a (0.7) per cent dilution caused by the timing
of Easter in 2008 and 2009, which was more than offset by a
0.9 per cent contribution
from net new space. LFL sales (including fuel) were up 5.5 per cent, which reflects
in part the impact of higher fuel prices and improved fuel volumes.
|
Sales (including VAT, including fuel) for the 52 weeks to 21 March 2009 |
2009 % |
2008 % |
|---|---|---|
| Like-for-like sales (Easter-adjusted) | 5.5 | 4.4 |
| Removal of Easter adjustment1 | (0.7) | 0.3 |
| Net new space (excluding extensions) | 0.9 | 1.1 |
| Total sales growth | 5.7 | 5.8 |
- Like-for-like sales growth has been Easter-adjusted for comparative purposes. 2008 included two Good Friday trading weeks and one Easter Sunday trading week. 2009 included one Easter Sunday trading week only.
Darren Shapland
Chief Financial Officer