Sainsbury (j) Share Discussion Threads

[spob] 07/11/2019 08:04

Current Assets minus Total Liabilities are now .... minus £12,850 million !

If you pretend there are no lease liabilities, that is still ... minus £7074 million !

[spob] 07/11/2019 07:36

why are you highlighting something we knew before the results ?

[skinny] 07/11/2019 07:05

.

Operational Highlights

· Positive momentum in Grocery market share1 and sales performance, driven by a strong customer response to lower prices and our new value brands. We launched 123 new value brand products, with 200 due by the end of the financial year

· We continue to improve Sainsbury's service and availability and customer satisfaction scores increased by more than three percentage points year on year2. We are investing in technology to make shopping easier and SmartShop handheld self-scanning technology is now in over 350 supermarkets

· We are investing in our store estate and have improved 172 supermarkets and 158 convenience stores this half. We will improve 450 supermarkets and 200 convenience stores this financial year

· Clothing and General Merchandise performance improved quarter on quarter as comparatives normalised. We are bringing Sainsbury's and Argos closer together to give customers easier access to all our products and services

· Argos sales grew ahead of the market3 and Fast Track delivery and collection continue to grow

· We have converted 176 Argos stores to our digital format this half and we will convert the majority of the remaining stores by the end of the year. Pay@Browse is now available in 362 Argos stores

· Following a strategic review of Financial Services, we no longer sell mortgages, are reducing costs and are focusing on digitally-led products and services for Sainsbury's and Argos customers

· We successfully launched digital Nectar nationwide, creating a platform for greater personalisation and reward. 2.1 million customers are now using the Nectar app

· We became the first retailer to remove single use plastic produce and bakery bags and have committed to reducing our plastic packaging by 50% by 2025

· Over 30,000 colleagues pledged to volunteer locally as part of our 150th birthday celebrations



Financial Highlights

· Group sales of £16,856 million, down 0.2 per cent

· Retail sales (excluding fuel) down 0.6 per cent

· Like-for-like sales (excluding fuel) down 1.0 per cent

· In line with guidance, underlying profit reduced by £41 million to £238 million due to the combined impact of the phasing of cost savings, higher marketing costs and tough weather comparatives

· As set out at the Capital Markets Day, we have reviewed our store estate, leading to £203 million of largely non cash one-off costs recognised in this half. Total one-off costs in the first half are £229 million, resulting in statutory profit before tax of £9 million. We continue to expect the total cost of the property strategy programme to be in the range of £230 million to £270 million

· Underlying earnings per share down 16 per cent to 7.9 pence

· Retail free cash flow of £698 million, up £81 million year-on-year, reflecting continued strong cash generation plus distributions from the British Land joint venture

· Net debt reduced by £568 million to £6,778 million, reflecting the above cash generation. As in previous years, net debt at half year benefited from working capital phasing which will reverse in the second half. We have committed to reduce non-lease net debt by at least £750 million in the next three years from £1,522 million4 and expect a reduction of at least £300 million in 2019/20

· New longer-term asset-backed pension plan agreed, providing greater security to the Scheme. 2018 triennial valuation deficit is down to £538 million, from £1,055 million in 2015 resulting in cash contributions reducing immediately by approximately £50 million per annum on average

· Unique opportunity to structurally reduce costs by c.£500 million over five years as we integrate Sainsbury's and Argos, in addition to ongoing cost savings to cover the impact of cost inflation

· Interim dividend of 3.3 pence per share, up 6 per cent, in line with our policy of paying 30 per cent of prior full year dividend. Full year dividend policy will change to 1.9x cover by underlying earnings (versus 2.0x previously) to offset the dilutive non cash impact of IFRS 16 on underlying earnings.

more.....

[chiefbrody] 05/11/2019 20:26

And div still lower than it was 10 years ago.Great name/brand run by numpties.

[ianood] 05/11/2019 18:57

Management is sadly lacking with no falling on swords either after the ASDA debacle!
Can't see any reason to buy, or come to that, to shop there! All very average.

[s34icknote] 05/11/2019 18:31

I'm getting 10.00 of an 80.00 shop and 1.50 delivery charge .This can't be good for margins .Doing a weekly online shop and top up at local Waitrose .Ten times earnings is 220p which is the ceiling for now .Sicknote

[ny boy] 05/11/2019 12:57

One worries about the direction of travel here, investors not keen to buy, management Shake up required to take the Company into the 2020’s
First step, reclaim 208p resistance or in danger of drifting to 187p support, above 208p, will be a short term positive.

[keyno] 05/11/2019 10:31

Who cares why they are shopping as long as the punters are shopping, Poikka!

[poikka] 05/11/2019 10:21

That's something that bothers me - the difference between stores; it just shouldn't happen.

I noticed yesterday that there were a few empty 'boxes' on the shelves, and what I thought was management helping at stocking the shelves, but soon realised that it was the usual staff in semi-Christmas gear. Kinda odd. It was very busy for a Monday - early Christmas shopping, or 5th November party shopping?

[keyno] 05/11/2019 10:07

Thanks, Poikka. Fifteen isn't too bad. Our large Sbry underwent a tart-up about 2 years ago and has never been the same since. The empty shelves syndrome started when it re-opened and has continued. Short staffed or bad management or poor logistics? We now see what is clearly management helping to stack shelves, to little avail as there are often large gaps. A lot of tins are bashed about too. The staff are always pleasant though, as well as very helpful and I much prefer shopping there to any of the other large stores, not least because the car park is never full. I'm not a fan of Coupe and only have a few shares here now, pleased to say.

[poikka] 05/11/2019 08:42

About 5 miles as the crow flies, Keyno, but 15 by car. Not sure just how much 'tarting-up' is going on, probably nothing like as much as happened at Hedge End. It's been looking a bit tired for a while - nothing serious, just slightly out of date (not the food..).

[keyno] 04/11/2019 22:43

How far apart from each other are the stores, Poikka?

[poikka] 04/11/2019 18:58

Thursday.

Sainsbury's continue to upgrade their stores - 2nd large store near us undergoing a tart-up atm.

[chiefbrody] 04/11/2019 11:36

Higher prices lol. Never believed that one. With such cutthroat competition, would never happen.Interims later this week i believe.

[nick rubens] 04/11/2019 11:06

Al these headlines with Aldi and Lidl taking market share and the big four seen to be in terminal decline.

There must be a way to calculate how long before Aldi and Lidl hit 100% market share then.

I'm still bemused at how the CMA concluded that the merger with Asda was blocked claiming it would lead to higher consumer prices.

[neilyb675] 02/11/2019 09:29

Sharesave price likely to be very enticing.

20% discount.

[loganair] 01/11/2019 13:59

For what it is worth:

31-Oct-19 Sainsbury (J) (SBRY) Barclays Overweight Target Price 250p
29-Oct-19 Sainsbury (J) (SBRY) Jefferies...Hold........'-'......220p

[demo trader] 30/10/2019 12:33

bought at 204.35p

[ny boy] 30/10/2019 11:37

Disappointing price action, since the last mini rally of “hope”

[johncasey] 30/10/2019 07:29

Dairy analyst Chris Walkland said questions needed to be asked over Sainsbury’s tendering process.

He said: “I am still hearing that Sainsbury’s farmers will not be paid, which begs the question as to whether legal action by Sainsbury’s farmers will be on the cards to get their money, given they were effectively forced to move by Sainsbury’s in the first place.

“If they do not get paid then Sainsbury’s can kiss goodbye to the reputation of the Sainsbury’s Dairy Development Group and Sainsbury’s as working closely with and caring for suppliers.”

The future is even less certain for 35 non-aligned producers in North Wales, who supplied to various roundsmen and stores via Tomlinsons.

However, it is believed the Welsh Government has been in talks with PWC and affected farmers hope they will be able to recover some of the money owed.

Sainsbury’s said while it did not comment on its relationships with individual suppliers, it had been working with Tomlinsons farmers and had prioritised the continuation of milk collections by switching to Muller.

An M&S spokesperson said: "Our relationships with our farmers are central to our Select Farms programme and this October, we are celebrating 20 years of our Milk Pledge, which is our promise to farmers that we will always pay a fair, leading and transparent price for milk.

"We are directly supporting the two farmers that have produced M&S Select Farm milk through Tomlinsons Dairies and we have paid them for the milk they have supplied to us.”
Meanwhile farming charity RABI has stepped in to offer grants worth £3,000 as part of its Crisis Fund.

The charity said affected farmers should contact its helpline which will help fast-track applications for financial assistance using a ‘simplified application and criteria process’.

RABI chairman Malcolm Thomas said: “RABI exists to support members of the farming community, which is why we are putting these measures in place at this difficult time.

“It is a proactive move on our part to make immediate, short-term support readily available.

“The news that Tomlinsons has gone into administration came out of the blue for many farmers, leaving some without payments for milk supplies and having to find alternative milk processors to supply to.”

Affected farmers have been urged to call RABI’s Freephone helpline number on 0808 281 9490.

[tim 3] 29/10/2019 20:53

I now avoid Amazon where ever possible.

They are simply too powerful and bad for so many smaller businesses I will never buy groceries from them.

[loganair] 23/10/2019 14:31

Sainsbury's desperately needs to do something...

Mr Potts CEO of Morrison's supermarkets acknowledges that “Amazon has ambition in grocery and we are one of the smaller British retailers. Both companies want to support innovative, different ways of serving customers better in the UK.” He also confirms that Morrisons could supply Amazon stores with groceries, if — or rather when — they finally open their till-free Go sites, and that distribution work is already going on for Amazon to use Morrisons supermarkets as “offering one- to two-hour delivery using our stores.”

[onjohn] 19/10/2019 18:08

Targets for Monday>


Down 15p at open?:

[loganair] 18/10/2019 21:21

Sadly, it is called living in a nanny state where the government tells its people what to do and how to live their lives.