J Sainsbury Plc (SBRY) full-Year FY19 Results Are Out!

3 min read | May 03, 2019 07:30 AM AEST | By Team Kalkine Media

J Sainsbury Plc is a multi-channel retailer that offers groceries, general merchandise and clothing, products. The company operates retail outlets of various formats including supermarkets and convenience stores, under the banners of Sainsbury’s, Habitat, and Argos across the UK and Ireland. It also retails through the online channel. These stores offer fruits and vegetables, meat and fish, dairy, eggs and juice, pet food, baby and toddler products, beer, spirits and wine and chilled and frozen food, for a few. The company also provides various financial services including travel money, insurance, credit cards, and loans.

On May 01, 2019, the retailer reported its full-year financial results for the period ended on March 09, 2019. The Group's underlying revenue including VAT for the period FY19 surged by 2.1% to £32,412 mn against the FY18 revenue. Underlying before tax profit surged by 7.8 per cent to £635 mn, primarily because of strong food performance and reduced interest costs. However, underlying retail operating profit rose by 10.7 per cent to £692 mn and Sainsbury's underlying retail sales (including VAT) were up by 2.1 per cent to £31,871 mn. Statutory Post-tax profit stood at £219 mn and declined by 29.4% from £309 mn in FY18, mainly on account of non-underlying charges relating to legislation on guaranteed minimum pension and retail restructuring, Asda transaction and Argos integration.

The retailer reported strong free cash flow of £461 mn and surged by 6.7 per cent in FY19. In FY19, the group has significantly reduced its debt by £222 mn to £1,636 mn (including perpetual securities). In FY19, the group has delivered a cost saving of £220 mn. Underlying interest costs narrowed by 19.3% to £96 mn. The board of the retailer-proposed a final dividend of 7.9 pence, and with this, the total dividend per share for FY19 stood at 11.0 pence and witnessed a surge of 7.8% against FY18.

Stock Performance – 1 Year

Daily price chart (as on May 02, 2019), before the market close. (Source: Thomson Reuters)

At the time of writing, (as on May 02, 2019 at 03:49 PM GMT), shares were quoting at GBX 224.20 and declined by 7.3 points or 3.15% against the previous day closing price. Shares have registered a 52w high of GBX 341.80 and a 52w low of GBX 212.10. The stock has witnessed a steep plunge in the last one year. The one-year return of the stock stood at negative 26.49%. From the simple moving average standpoint, shares were trading considerably below the 200-day simple moving average price, which is a bearish technical indicator. The outstanding market capitalisation of the company stood at £4.91 bn and at the current market price, as quoted in the price chart, the dividend yield stood at 4.76%.


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