The Sainsbury Board has recommended an interim dividend of 3.9 pence per share (2021/22: 3.2 pence) reflecting 30 per cent of the 2021/22 full year dividend per share. This will be paid on 16 December 2022 to shareholders on the Register of Members at the close of business on 11 November 2022. Sainsbury's has a Dividend Reinvestment Plan (DRIP), which allows shareholders to reinvest their cash dividends in our shares. The last date that shareholders can elect for the DRIP is 25 November 2022.
Other financial highlights include:
Grocery sales up 0.2 per cent in H1. Strong growth in Q2 of 3.8 per cent as lockdown comparatives eased, market price inflation accelerated.
General merchandise sales down 6.1 per cent across H1 but up 1.2 per cent in Q2, driven by improved availability, favourable summer weather and strong market share gains. Growth was driven by categories such as consumer electronics and seasonal products
Statutory Group sales (excluding VAT) up 4.4 per cent, with fuel sales up 39.5 per cent. Like-for-like sales (excluding fuel) down 0.8 per cent, with Q2 up 3.7 per cent after a decline of 4.0 per cent in Q1
Retail operating profit down 9 per cent, reflecting our investment in value, reduced grocery and general merchandise volumes post-pandemic and higher operating costs, partially offset by a higher fuel contribution
Underlying profit before tax of £340 million, down 8 per cent; Financial Services operating profit of £19 million, flat year-on-year, and finance costs 9 per cent lower. UPBT up 43 per cent versus H1 19/20
Statutory profit before tax of £376 million, down 29 per cent, reflecting higher exceptional income in the prior year from settlement of legal disputes
H1 net funds balance £361 million. Strong retail free cash flow of £759 million, up 37 per cent, reflecting higher grocery sales and more typical seasonal working capital inflows against last year's impact of Covid unwind. On track to deliver guidance of at least £500 million free cash flow in FY22/23
Guidance unchanged: continue to expect FY22/23 underlying profit before tax of between £630 million and £690 million
