J. Sainsbury Significantly Outperforms the Market

LONDON -- Sainsbury's  (LSE: SBRY  ) released its preliminary results for the year to March 16, 2013 this morning, and reported good sales and profit growth, with "significant market outperformance."

Underlying pre-tax profit grew 6.2%, to 756 million pounds, on total sales that had increased 4.6% to 25,632 million pounds, with total like-for-like sales (excluding fuel) up 1.8%. Basic earnings per share was up 9.3% to 30.7 pence, and the board has proposed raising the full-year dividend by 3.7%, bringing it to 16.7 pence, making Sainsbury's yield around 4.2%.

Sainsbury has now recorded 33 consecutive quarters -- over eight years -- of like-for-like sales growth, and states that its market share is at the highest level for a decade, having increasing to 16.8% over the past year. Whilst it's still a long way behind the U.K.'s No. 1 supermarket, Tesco, which still commands a little more than 30%, Sainsbury's now seems well placed to eventually reclaim the No. 2  spot from Asda, which is only just ahead at around 17.5%.

The company also confirmed that it is to assume full control of Sainsbury's Bank, buying the 50% owned currently by Lloyds Banking Group for 248 million pounds. The company said that taking full ownership of the bank -- which saw a 38% rise in pre-tax profit and an 8% increase in active accounts over the year -- will "enable its full potential to be realized."

Commenting on the results, Chief Executive Justin King said:

Our focus on helping our customers Live Well For Lessis delivering good growth in sales and profit. Our key points of difference, such as the best quality own-brand, Nectar, Brand Match, coupon-at-till and industry leading service, are recognized by our customers.

Our decision to take full ownership of Sainsbury's Bank will add further momentum to our strategy of developing complementary channels for the benefit of both customers and shareholders.

Whilst we see no near term change in the current economic situation, we remain confident that by continuing to invest in our long-standing strategy and by understanding and helping our customers, we are well positioned for future growth.

Despite the good results, Sainsbury's share price is currently more than 2.5% down so far this morning, but remains more than 30% up on this time last year.

Whether you own Sainsbury's or not, if you're looking for a high-quality dividend-yielding share you'll definitely want to know about The Motley Fool's Top Income Share for 2013. The Fool's expert analysts have found a top-quality company that's paying a 5.6% dividend.

It's named in our free report, so get your copy now!


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2419073, ~/Articles/ArticleHandler.aspx, 10/21/2016 11:09:43 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,069.87 -92.48 -0.51%
S&P 500 2,136.28 -5.06 -0.24%
NASD 5,245.03 3.19 0.06%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 10:54 AM
LLOY $55.32 Down -0.24 -0.43%
Lloyds Banking Gro… CAPS Rating: No stars
SBRY $240.20 Up +1.50 +0.63%
Sainsbury (J) CAPS Rating: No stars
TSCO $210.16 Down -0.45 -0.21%
Tesco CAPS Rating: No stars