RSS   Newsletter   Contact   Advertise with us
Post Online Media

J Sainsbury sees first drop in profit in ten years

J Sainsbury
J Sainsbury   Group sales, excluding VAT, were down 0.7%

J Sainsbury reported its first drop in full-year underlying profit in ten years. Group sales, excluding value added tax, were down 0.7% in the 52 weeks ended March 14 to £23.78 billion ($36.12 billion).


Underlying pretax profit, which strips out one-time items and pension expenses, dropped 15% to £681 million but beat analysts’ consensus estimate of £659 million, according to the company.

J Sainsbury reported a full-year pretax loss of £72 million, including one-time charges, compared with a profit of £898 million a year earlier.

J Sainsbury in November outlined a plan to save £500 million over the next three years and has said it would cut hundreds of jobs as part of the process. The grocer has also said it would pour £150 million into cutting prices.

The company proposed a full-year dividend of 13.2 pence, down 24%.

J Sainsbury’s banking unit marked a relative bright spot, with operating profit up 17% to £62 million.The company said total capital costs associated with its transition to a new platform as it moves to take full ownership of the bank are expected to increase by between £80 million and £120 million.

 

What to read next

 
 

POST Online Media does not use cookies to collect information about visitors.   OK, hide this message   Third party ads may be using cookies, you can see how here.