The Sainsbury's Board has recommended an interim dividend of 3.2 pence per share (2020/21: 3.2 pence) reflecting 30 per cent of the 2020/21 full year dividend per share. This will be paid on 17 December 2021 to shareholders on the Register of Members at the close of business on 12 November 2021. Sainsbury's has a Dividend Reinvestment Plan (DRIP), which allows shareholders to reinvest their cash dividends in their shares. The last date that shareholders can elect for the DRIP is 26 November 2021.
Sainsbury's plans to maintain a full-year dividend covered 1.9 times by their full-year underlying earnings.
Other financial highlights included:
Grocery sales grew by 0.8 per cent versus H1 20/21 and 9.1 per cent versus H1 19/20 and they gained market share, driven by improved value, innovation and service, supported by customers continuing to eat at home more
General Merchandise sales reduced by 5.8 per cent versus H1 20/21, as expected against strong lockdown and seasonal sales comparatives, but grew 1.1 per cent versus H1 19/20
Strong digital sales of £5.8 billion, consistent with H1 20/21 at 39 per cent of retail sales
Statutory Group sales (excluding VAT) up 5.3 per cent, with fuel sales up 62.7 per cent
Underlying profit before tax of £371 million, up 23 per cent versus H1 20/21. Up 56 per cent versus H1 19/20, reflecting higher grocery sales and effective cost reduction programmes, particularly at Argos
Statutory profit before tax of £541 million reflects significantly lower restructuring and impairment costs versus H1 20/21 and £181 million of exceptional income from settling legal disputes
Strong retail free cash flow of £554 million. On track to meet free cash flow and net debt reduction targets
They continue to expect to report underlying profit before tax of at least £660 million in the financial year to March 2022
