J Sainsbury (SBRY) investor relations material

Executive summary

• Achieved highest H1 market share in five years at 13.0%, with nearly 1 million new primary customers and strong customer satisfaction improvements, driven by focused investment in value, quality, and service.

• Delivered strong H1 sales and profit growth, outperformed the market in grocery volume and premium own label, and sustained momentum through innovation, new product launches, and loyalty expansion.

• Completed phased withdrawal from Financial Services, with proceeds exceeding £400m and new long-term income streams established.

• Expanded food space by opening new supermarkets and investing in store refits, with over 1 million sq ft of new space planned by end of next year.

• Strengthened profit guidance for the full year, reflecting confidence heading into the festive season and supporting enhanced shareholder returns.

Financial highlights

• Retail sales (excl. fuel) grew 4.8% year-over-year; grocery sales up 5.3%, Argos up 2.3%, and clothing up 7.8%.

• Retail underlying operating profit at £504m, broadly in line with last year and ahead of expectations.

• Underlying EPS increased 12% to 10.3p; interim dividend up 5% to 4.1p per share.

• Retail free cash flow £310m in H1, with guidance for at least £500m for the full year; net debt reduced to £5,527m.

• Statutory profit after tax £165m, up 117% YoY; basic EPS 7.2p (up 125%).

Outlook and guidance

• Retail underlying operating profit for FY 2025/26 expected to exceed £1bn; retail free cash flow to exceed £500m.

• Plans to open up to 12 new supermarkets and ~30 convenience stores in 25/26, adding over 1 million sq ft of grocery space by end of next year.

• Total cash returns to shareholders in FY 2025/26 expected to exceed £800m.

• Non-underlying cash costs for restructuring expected at £100m in 25/26; total £150m over three years.

• Underlying net finance costs expected between £300m–£310m; underlying tax rate around 30%.