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Sainsbury (J) PLC - Stock Quote SBRY

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Morningstar's Sainsbury (J) PLC Stock Analysis

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J Sainsbury Beats on Profit in Fiscal 2022, but Fiscal 2023 Guidance Disappoints; FVE Maintained

Ioannis Pontikis, CFA Senior Equity Analyst

Analyst Note

| Ioannis Pontikis, CFA |

J Sainsbury reported fiscal 2022 results with like-for-like sales growth down 2.3% (up 3.6% including fuel) and underlying profit before taxes of GBP 730 million versus GBP 727 million for company-compiled consensus and GBP 673 million in our model. The grocery performance slowdown was largely expected as the benefit from increased food-at-home consumption trends started to wane, down 0.2% for the year but up 7.6% on a two-year basis. In other categories, clothing and fuel grew 12.7% and 60%, respectively, with gross merchandise sales down about 12%, all the result of normalization patterns from the reopening of the economy. Notably, groceries online now account for 17% of overall grocery sales, with 39% of the group's sales originating in the digital channels.

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Sainsbury (J) PLC's Company Profile

Business Description

Founded in 1869, Sainsbury's is the second- largest U.K. grocery chain with 15% market share. It operates over 600 supermarkets and 800 convenience stores, all in the U.K. The company has diversified away from core food by selling clothing, telecom equipment, and other nonfood items. In September 2016, it took a step further into nonfood retailing with the purchase of Home Retail Group, operating the Habitat and Argos chains (general merchandise and electronics stores), for GBP 1.10 billion. It has been selling products online since 1997.

Contact
33 Holborn
London, EC1N 2HT, United Kingdom
T +44 2076956000
Sector Consumer Defensive
Industry Grocery Stores
Most Recent Earnings
Fiscal Year End Mar 31, 2022
Stock Type
Employees 117,000

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