Sainsbury's exceeds expectation

Despite much of the focus on the failed merger, Sainsbury’s delivers an impressive set of results addressing many of the key concerns that have led to the negative sentiment and exceeding expectations. 


Cost efficiencies are finally rewarding investors - 8% per cent hike in profits and dividend whilst strong cash flows is strengthening the balance sheet with debt reduced by £220m and a new commitment to reduce debt further by £600 million.

The share price is up 5% - reversing the decline from the merger blockage last Thursday.


Highlights:


  • Group sales up 2.1% FY19 – growth across all channels

  • Supermarket + 1%

  • Convenience +3.7%

  • Online + 6.9 %

  • Store pick online fulfilment = same day delivery to over 50% of UK - up 20% over FY18

  • Argos in supermarkets delivering

  • Sales +2.2%, plus £160 million in cost synergies

  • Third most visited website in the UK

  • Supermarkets with Argos growing faster

  • Balance sheet stronger with debt lower by +£220m - Targeting £600m over 3Ys

  • Total profits up 8% and dividend up 8% per cent

  • Strong free cash flow

  • Dividend cash cover of 2.1 times

  • Accelerating investment in store estate and technology




123 Victoria Street, London, SW1E 6DE

Telephone: +44 20 3790 8087,  Email: ir@atratocapital.com

ABOUT

Supermarket Income REIT plc is listed on the London Stock Exchange. SUPR acquires UK supermarket sites that form a key part of the future model of grocery in the United Kingdom. SUPR aims to provide long-term inflation-linked income, from institutional grade tenants and the potential for capital growth through active asset management. Atrato Capital is the Company's Investment Adviser.

CONNECT

  • White Twitter Icon

GOVERNANCE

Supermarket Income REIT Plc is a proud member of the Association of Investment Companies implementing the principles and recommendations of the AIC’s Code of Corporate Governance.

Supra Logo Blue-Gold RGB.png