J Sainsbury (SBRY) investor relations material

Executive summary

• Delivered continued volume growth and market share gains, outperforming the grocery market despite operational challenges and tough comparatives, with a focus on value, quality, availability, and service.

• Outperformed the market across key seasonal events, driving customer engagement and loyalty, and achieved record customer satisfaction scores in both supermarkets and online grocery fulfillment.

• Strengthened competitive position with improved value perception and digital engagement, supported by ongoing strategic priorities and digital enhancements.

Financial highlights

• Grocery sales grew 3.6% year-over-year, with total retail sales (excluding fuel) up 2.7% to £9,153 million and Sainsbury's sales up 3.1%.

• General Merchandise & Clothing sales declined 3.7% to £438 million; Argos sales down 0.5% to £1,114 million, impacted by lower average selling prices and space reductions.

• Like-for-like sales (excluding fuel) up 2.1% year-over-year.

• Retail operating profit guidance: £1,045 million including financial services; underlying operating profit guidance of £975–1,075 million.

Outlook and guidance

• Guidance for profit and cash remains unchanged, with expectations to outperform the grocery market by around 1% for the year and retail free cash flow over £500 million.

• Continued investment in technology, automation, and store digitisation to drive productivity and cost reduction.

• Cautious outlook maintained due to ongoing consumer uncertainty, inflationary pressures, and external risks including the Middle East conflict.