The Sainsbury (J) Board has recommended an interim dividend of 3.9 pence per share (HY 2022/23: 3.9 pence) reflecting 30 per cent of the 2022/23 full year dividend per share. This will be paid on 15 December 2023 to shareholders on the Register of Members at the close of business on 10 November 2023. 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 24 November 2023.
Other financial highlights include:
Grocery sales up 10.1%. Volume growth across both quarters driving record market share gains and consistent market outperformance
General Merchandise sales up 1.1% despite tough weather comparatives over the summer (up 2.5% excluding the impact of the closure of Argos in the Republic of Ireland)
Clothing sales down 8.4%, reflecting a disciplined trading approach in a seasonally weak and promotionally-driven market
Statutory Group sales up 3.5%, with fuel sales down 19.6% driven by lower input prices. Like-for-like Retail sales (excluding fuel) up 8.4%
Retail operating profit £485 million, up 2%, reflecting strong volume-driven grocery profit growth and continued delivery of Save to Invest cost saving benefits, partially offset by the impact of weaker seasonal sales on General Merchandise profits
Financial Services operating profit of £13 million versus £19 million last year. This primarily reflects net interest margin reduction, with higher funding costs not being fully passed on through higher lending costs
Underlying profit before tax of £340 million, flat year-on-year
Underlying earnings per share 10.5 pence, down 6% due to the higher rate of corporation tax
Statutory profit before tax of £275 million, down 27%, predominantly reflecting non-cash movements and one-off income from legal settlements in the prior year. Statutory earnings per share 6.6 pence, down 46%
Retail free cashflow of £520 million, driven by strong grocery sales growth and seasonal H1 benefit from timing of payments
Net debt including leases £701 million lower at £5,643 million, reflecting strong cash generation and a £1,042 million reduction in lease debt as a result of the Highbury & Dragon property transaction. Net debt excluding leases increased by £375 million to £231 million, reflecting the £670 million cash costs of funding the consideration for the transaction
