Sainsbury's heralds "pivotal year" but profits down

Sainsbury's suffered a slide in both like-for-like sales and pre-tax profits in a year marked by the devaluation of the pound and fierce price competition between Britain's retailers.

Group sales were up 12.7% during the period, mainly as a result of the purchase of the Argos chain, while pre-tax profit was £581m compared with £587m during the same period previous year.

The firm said the outcome reflected price cuts and cost inflation, offset by cost savings of 130 million pounds and a contribution from Argos of 77 million pounds.

"However, we are well placed to navigate the external environment and we remain focused on delivering our strategy", Coupe concluded.


Chief executive Mike Coupe said the United Kingdom grocery sector was "one of the most challenging, if not the most challenging, in the world".

Mr Coupe said it had been a "pivotal year" for the group after the £1.4bn takeover of Argos, which contributed £77m to profits.

ETX Capital's Neil Wilson said Sainsbury's full years were "not a great set of numbers", and that the most concerning aspect of the supermarket's performance was its 0.6 per cent drop in like-for-like sales. "Our food business remains resilient in a challenging market and we continue to innovate in quality and to invest in price".

Group sales, including Value-Added Tax, for the 2016/17 period were healthier than the year prior, growing 12.7% to £29bn, though, this was largely the result of the Argos contribution.


As such, it plans to accelerate its plans to open 250 of these digital stores and also expects to deliver its £160m EBIDTA synergy target six months' ahead of schedule.

"For the time being, lost sales and profit from Sainsburys' supermarket format is being made up in other areas, which in part, fulfil's it's commitment to shareholders".

Coupe defended his acquisition of the Argos chain, which has dramatically increased Sainsbury's footprint in general merchandise.

Phil Dorrell, partner at Retail Remendy, said: "Sainsburys has reported growth in all categories except it's core supermarket offer. Sushi and patisserie does not fill a family's fridge".



Popular
  • Hillary Clinton blames herself - and misogyny, Federal Bureau of Investigation and Russian Federation - for defeat

    She said it's fair to question President Donald Trump's legitimacy due to supposed Russian involvement in the election. Just for good measure, she also blamed the media and woman-hating for her failure to take the top job.
    Elderly woman beat attacker with walking stick before death

    Elderly woman beat attacker with walking stick before death

    Police say a young man attacked to the two women Wednesday morning while they walked around a high school track near Sacramento. When the woman's friend, later identified as 86-year-old Fusako Petrus tried to fight off Butler, Butler then attacked her.
    In final hours, Hernandez thought of family, not football

    In final hours, Hernandez thought of family, not football

    In 2013, the football player allegedly shot Odin Lloyd and left him for dead in an industrial park near his North Attleboro home. CTE, or Chronic Traumatic Encephalopathy, is a disease often found in the brains of athletes who have sustained head traumas.
  • Nick Cannon Loses Childhood Friend During Sunday's Shooting In San Diego

    Nick Cannon Loses Childhood Friend During Sunday's Shooting In San Diego

    Griffin also said that "Ki" was the first person shot and he was hit three times - twice in one leg and once in the other. Police shot and killed a 49-year-old man suspected of shooting seven people Sunday at a birthday pool pa.

    Beating Spurs in FA Cup has no bearing on league, says Conte

    With 78 points from 33 matches, Chelsea now lead second placed Tottenham with 7 points, but Pochettino's men have a game in hand. But midfielder Pierre-Emile Hojbjerg says the calibre of the opposition means they will have no trouble motivating themselves.

    (NASDAQ:AAL) from Major Airlines - Todays Top Gains

    Inside the closing six months period the stock's performance raised 8.16% while overall yearly performance gained 11.04%. Investors are always looking for stocks that are poised to beat at earnings season and American Airlines Group Inc .
  • Google's parent company reports revenue rise

    Google's parent company reports revenue rise

    Van Cleef Asset Management Inc increased its position in shares of Alphabet by 4.6% in the third quarter. The company's 50 day moving average price is $855.24 and its 200 day moving average price is $825.27.

    Trump backs away from demand for border wall money

    Trump has raised the possibility of allowing the cost-sharing subsidy to expire by the end of this year. We're at "the point you need to decide if you have the time to get all the paperwork all together".
    Serena Williams responds to tennis star's 'racist' remark with message of determination

    Serena Williams responds to tennis star's 'racist' remark with message of determination

    In the last 12 months, Williams played only 7 events but even that was enough to claim the leading position with 7010 points. Olympic golden girl Dame Jessica Ennis-Hill has backed Serena Williams to handle being a mum and an athlete.
  • Gift Ngoepe Becomes First African-Born Player In MLB

    Tony Watson pitched the final 1 1/3 innings for his seventh save. "It's probably the best I threw the ball all year", Lester said. Wade LeBlanc (1-0), who pitched 1 1/3 scoreless innings in relief of rookie Tyler Glasnow, got the win.
    Shea Moisture pulls ad after getting hammered on social media

    Shea Moisture pulls ad after getting hammered on social media

    A popular brand of natural hair products with deep ties to the African-American community is under fire for a recent ad. This ad isn't the first time SheaMoisture has featured white women .
    Netflix Makes Headway in China with First Licensing Deal

    Netflix Makes Headway in China with First Licensing Deal

    Netflix does say that the licensed material will be available on iQiyi at the same time that it begins streaming elsewhere. Last year, Youku Tudou reported having over 30 million subs, and iQiyi and Tencent each claimed over 20 million.

CONNECT