J Sainsbury (SBRY) investor relations material

Executive summary

• Delivered strong Q3 trading performance with best-ever Christmas execution, driven by outstanding teamwork, value, quality, and service, resulting in high customer satisfaction and trading momentum.

• Achieved significant grocery market share gains for the sixth consecutive Christmas, with volume market share rising from 12.0% in Q3 21/22 to 13.2% in Q3 25/26.

• Record sales in convenience and 14% online sales growth, with strong performance in fresh food and premium Taste the Difference brand sales up 15%.

• Clothing outperformed the market by 10 percentage points in volume growth, achieving record Christmas category sales.

• Maintained a strong value proposition, driving higher loyalty and larger basket sizes despite a softening or declining market.

Financial highlights

• Q3 total retail sales grew by 3.9% year-over-year, with grocery up 4.9%, like-for-like sales (excluding fuel) up 3.4%, and Argos up 3.4%.

• Grocery volume growth remained around 2% year-over-year, with fresh food sales up 8%, fruit and veg up 6%, meat/fish/poultry up 9%, and dairy up 10%.

• Taste the Difference premium label fresh food sales grew 15% year-over-year, making it the fastest-growing premium label in the market.

• General merchandise and clothing sales declined 1.1% year-over-year, impacted by reduced space allocation and lower average selling prices.

• Fuel sales increased by 5.4% in Q3.

Outlook and guidance

• Retail underlying operating profit expected to exceed £1 billion for the year, but likely to be slightly lower than last year due to industry cost pressures and subdued general merchandise.

• Free cash flow guidance upgraded to at least £550 million, on track for £1.6 billion over the life of the plan.

• Over £800 million to be returned to shareholders via dividends, a £250 million special dividend, and a £250 million share buyback.

• Inflation is past its peak, with commodity costs stabilizing and no expectation of unexpected regulatory costs next year.

• Sustaining a strong competitive position through technology investment, automation, and productivity improvements.