Image source: Shutterstock

Highlights

  • J Sainsbury PLC reported FY24 revenue of GBP 36,337mn, a 3.4% increase from FY23.
  • Underlying profit before tax rose to GBP 701mn, up 1.6% from FY23.
  • Sainsbury plans to acquire 10 Homebase stores, adding 235,000 sq. ft of retail space.
  • Expected profit growth of 5% to 10% for the upcoming year, targeting GBP 1,010mn to GBP 1,060mn.

J Sainsbury PLC (LSE:SBRY) is a food retailer listed on the FTSE 100 index. It operates more than 600 supermarkets and 900 convenience stores. The company employs around 189,000 people.

In FY24, J Sainsbury PLC reported a group revenue of GBP 36,337 million, a 3.4% increase from GBP 35,157 million in FY23. The increment in revenue was attributed to a rise in retail sales driven by higher grocery and general merchandise sales. This growth was also influenced by the closure of Argos in the Republic of Ireland.

Additionally, the underlying profit before tax reached GBP 701 million, up 1.6% from GBP 690 million the previous year. This improvement was largely due to higher revenue and increased sales volumes, although it was somewhat offset by rising operational and financing costs.

Recent Business Update

In a press release dated August 29, 2024, Sainsbury's announced plans to acquire 10 Homebase stores. These stores will be transformed into supermarkets, adding about 235,000sq ft of retail space. Each store will range from 15,000 to 40,000sq ft. The total investment for this acquisition is expected to be around GBP 130 million, which will cover lease costs and fit-out expenses. This move is part of Sainsbury's broader growth plan to improve its market presence and increase its customer base.

Company Outlook

Sainsbury expects a decent profit growth for the upcoming year. It is eyeing retail underlying operating profit in the range of GBP 1,010 to GBP 1,060 million, reflecting a 5% to 10% increase. Grocery volumes are projected to grow faster than the market, enhancing profitability. This growth will be supported by continued contributions from Nectar and stable performance from Argos. Additionally, cost-saving measures are expected to bolster these gains. Retail free cash flow is forecasted to reach at least GBP 500 million.

Top 10 Shareholders

Sainsbury’s top 10 shareholders together hold about 51.79% of the total shares. Qatar Investment Authority has the largest stake, owning approximately 14.21% of the shares. Vesa Equity Investment S.à r.l. follows with around 10.00% as depicted below:

Price Information

 The stock price of SBYR has fallen by approximately 5.24% in the past month. However, it has increased by about 5.45% over the past six months. The stock's 52-week low is GBX 244.00, while the 52-week high is GBX 312.00. As of 14 Oct 2024, the stock’s closing price is GBX 274.6.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 14 October 2024. The reference data in this report has been partly sourced from EODHD/Others.