Pic: Sainsbury's/Tu Clothing
Underlying profit before tax (UPBT) for FY23 was £690 million, up 5 per cent, but at the top end of its guidance range of between £630 million and £690 million. UPBT was up 18 per cent compared to pre-pandemic levels in 2019-20.
Statutory profit before tax for FY23 was reported at £327 million, compared to £854 million last year.
Furthermore, Sainsbury’s retail free cash flow was £645 million, while underlying earnings per share were 23 pence, down 9 per cent. Basic earnings per share were 9 pence, down 70 per cent.
Furthermore, the company has grown its full-price sales to now make up 80 per cent of its clothing sales, up 15 percentage points versus pre-pandemic levels, while also extending its range of third-party clothing brands to offer more choice and convenience. Tu, Sainsbury's in-house clothing brand, is now the sixth largest UK clothing brand by volume.
Looking ahead, Sainsbury's expects UPBT between £640 million and £700 million for FY24, while also expecting to generate at least £500 million of retail free cash flow.
Simon Roberts, chief executive of J Sainsbury plc, said: “We really get how tough life is for so many households right now which is why we are absolutely determined to battle inflation for our customers. Our focus on value has never been greater and we have spent over £560 million keeping our prices low over the last two years. As a result, we are now the best value compared to our competitors that we have been in many years.
“We have improved the performance and profitability of Argos, Tu, Nectar and Financial Services so that we can invest further in the areas that customers and colleagues care about most.”
Fibre2Fashion News Desk (DP)