Sainsbury’s underlying sales up 9.8%: ‘food inflation is starting to fall’

July 04, 2023 06:05 AM PDT | By Invezz

Sainsbury’s underlying sales up 9.8%: ‘food inflation is starting to fall’ — Image source: Invezz

Sainsbury’s Q1 financial results

The supermarket chain said its like-for-like sales climbed 9.8% in the fiscal first quarter. Sainsbury attributed the growth primarily to the strength in its groceries segment that was up 11%.

Total retail sales increased 9.2% versus a year ago even though clothing sales slipped 3.7% in Q1. In the press release, CEO Simon Roberts said:

Food inflation is starting to fall and we’re committed to passing on savings to customers. Since March, we’ve invested over £60 million in lowering prices, leading on price cuts across more than 120 essentials.

General merchandise sales gained 4.0% in the recent quarter. Sainsbury stock is currently up 20% versus the start of the year.

Sainsbury’s guidance for the full year

On Tuesday, J Sainsbury plc also reiterated its guidance for the full financial year.

The retailer expects up to £700 million ($888.4 million) in underlying profit before tax this year. It is also committed to generating at least £500 million of retail free cash flow. According to CEO Roberts:

Combination of great value and some good weather in recent weeks means we have grown our food volumes and market share. We grew ahead of the market over Easter, the Coronation, and the bank holidays.

Sainsbury stock currently pays a dividend yield of just under 5.0%. Wall Street currently has a consensus “hold” rating on it.

The post Sainsbury’s underlying sales up 9.8%: ‘food inflation is starting to fall’ appeared first on Invezz.

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