UK's Sainsbury interim sales ex-fuel rise on grocery volume growth

J Sainsbury

Today 07:12

Overview
UK supermarket chain's interim revenue ex-fuel rose 2.6% yr/yr on continued grocery volume growth
Underlying basic EPS for the period rose 10.4% yr/yr
Company completed £200 mln of planned £300 mln share buyback, remainder to finish in H2

Outlook
Sainsbury raises FY underlying operating profit guidance to £1,025 mln-£1,065 mln from £965 mln-£1,065 mln (continuing ops)
Company continues to expect FY free cash flow of more than £500 mln
Sainsbury expects UK grocery market to remain highly competitive in H2

Result Drivers
GROCERY VOLUME GROWTH - Co said continued grocery volume growth drove sales, with customers choosing Sainsbury's for value and quality
VALUE INITIATIVES - Co attributed performance to Nectar Prices and Aldi Price Match, helping customers save and inflating behind the market
PRODUCT INNOVATION - Co said expanded ranges and new products, including Taste the Difference sales up over 6%, supported growth

Company press release: ID:nRSV9567Za

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 LFL Sales Growth Ex. Fuel
 
1.90%
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the food retail & distribution peer group is "buy."
Wall Street's median 12-month price target for J Sainsbury PLC is GBp357.50, about 0.7% below its October 21 closing price of GBp360.00
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)