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Sainsbury's First Quarter Trading Statement for the 16 weeks to 25 June 2022.

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idpickering
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Sainsbury's First Quarter Trading Statement for the 16 weeks to 25 June 2022.

#511745

Postby idpickering » July 5th, 2022, 7:14 am

Simon Roberts, Chief Executive of J Sainsbury plc, said: "We really understand how hard it is for millions of households right now and that's why we are investing £500 million and doing everything we can to keep our prices low, especially on the products customers buy most often. We're working hard to reduce costs right across the business so that we can keep investing in these areas that customers care most about. The progress we are making on improving value, quality, innovation and service is reflected in our improved grocery volume market share.

"Our customers are watching every penny and every pound but they also look to Sainsbury's when they want to treat themselves, particularly at special occasions. We are really connected to our customers and through strong delivery of our plan, we have outperformed the market at key events such as the Jubilee1.

"I would like to thank my colleagues for their brilliant efforts this quarter. We are proud to be the first major supermarket to pay the Living Wage to all colleagues, regardless of where they live - and to have increased Sainsbury's colleague pay by 25% and Argos by 39% over the past five years. The pressure on household budgets will only intensify over the remainder of the year and I am very clear that doing the right thing for our customers and colleagues will remain at the very top of our agenda."

Financial highlights and outlook

· Good grocery performance, with sales down 2.4% against last year's elevated COVID-19 driven levels and 8.7% ahead of pre-pandemic sales

· General Merchandise and Clothing sales in line with expectations, with an improved sales trend following the first five-week period when non-essential retail was closed during lockdown last year

o Argos sales down 7% in the last 11 weeks of the quarter, down 19% in the first five weeks

o Sainsbury's General Merchandise sales down 5% in the last 11 weeks, down 30% in the first five weeks

o Clothing sales down 2% in the last 11 weeks, down 26% in the first five weeks

· Outlook unchanged; continue to expect FY22/23 underlying profit before tax of between £630m and £690m


https://www.investegate.co.uk/sainsbury ... 00062853R/

Also posted on Company News here; viewtopic.php?p=511742#p511742

I hold these in my HYP, alongside Tesco in the sector. tbh, the SBRY results don't look too hot imho, and although I hold them, I've no intention of increasing my holdings of that stock any time soon, nor am I bailing out of them either.

Ian.

vand
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Re: Sainsbury's First Quarter Trading Statement for the 16 weeks to 25 June 2022.

#511766

Postby vand » July 5th, 2022, 9:18 am

I offloaded my SBRY last year right near the spike to 340p when all the PE speculation was going on around the supermarkets, but they're definitely back onto my radar at this price. A nice 6%+ yield in a solidly defensive business with a recognised and trusted brand.

If they ever manage to improve the efficiency of their margins to the same degree as Tesco then there is potential for very good return, but even if they just continue to tick along they aren't a bad buy & hold for sleep easy portfolios. Overall I like the risk/reward on this.

Dod101
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Re: Sainsbury's First Quarter Trading Statement for the 16 weeks to 25 June 2022.

#511790

Postby Dod101 » July 5th, 2022, 10:51 am

vand wrote:I offloaded my SBRY last year right near the spike to 340p when all the PE speculation was going on around the supermarkets, but they're definitely back onto my radar at this price. A nice 6%+ yield in a solidly defensive business with a recognised and trusted brand.

If they ever manage to improve the efficiency of their margins to the same degree as Tesco then there is potential for very good return, but even if they just continue to tick along they aren't a bad buy & hold for sleep easy portfolios. Overall I like the risk/reward on this.


It will be interesting to see what their next results look like with sales down the way they are. They also have a wide range for profit guidance but that is probably understandable at this early stage in their year. I am not attracted to supermarkets. Their market is not expanding and they are just undercutting each other to keep prices down. I am not sure how 'solidly defensive' their business actually is.

Dod

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Re: Sainsbury's First Quarter Trading Statement for the 16 weeks to 25 June 2022.

#511791

Postby pje16 » July 5th, 2022, 10:56 am

Dod101 wrote:Their market is not expanding
Dod

I think it is
the UK population has risen by almost 700,000 in the past two years
https://www.worldometers.info/world-pop ... opulation/

Dod101
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Re: Sainsbury's First Quarter Trading Statement for the 16 weeks to 25 June 2022.

#511794

Postby Dod101 » July 5th, 2022, 11:01 am

pje16 wrote:
Dod101 wrote:Their market is not expanding
Dod

I think it is
the UK population has risen by almost 700,000 in the past two years
https://www.worldometers.info/world-pop ... opulation/


Yes. Wrong choice of words, thank you. What I meant to say is that as long as the supermarkets keep actively cutting prices (also known by Sainsbury as 'Investing £500 million') the opportunity to expand their businesses is very limited. We can see the results of that in the reduced turnover in many areas outlined in Sainsbury's statement.

Dod

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Re: Sainsbury's First Quarter Trading Statement for the 16 weeks to 25 June 2022.

#511799

Postby pje16 » July 5th, 2022, 11:11 am

Dod101 wrote:

fair point Dod
well noted


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