Printer Friendly

SAINSBURY'S ANNOUNCES INCREASED PROFITS FOR 1992/93

 LONDON, May 12 /PRNewswire/ -- U.K. supermarket chain J Sainsbury plc (Sainsbury's) today announced full year results for 1992/93. Highlights are as follows:
 -- Group sales exceed 10 billion pounds sterling.
 -- Over 10 million customers now served each week.
 -- Group profit before tax up 16.7 percent to 732.8 million pounds.
 -- U.K. supermarket and hypermarket sales up 12.6 percent and market share up 0.7 to 11.3 percent.
 -- Sales at Homebase, DIY stores up 9.8 percent and operating profit up 16.3 percent.
 -- Net debt at 18.7 percent of shareholders' funds underlines Sainsbury's extremely strong financial position.
 David Sainsbury, company chairman, commented: "In my first year as chairman I am delighted to report another excellent performance. As a result of strong sales growth and tight control of costs we have again widened the gap over our principal competitors.
 "In a dynamic and highly competitive market the outstanding value of the Sainsbury brand has resulted in major increases in customer numbers and market share. We see plenty of opportunities to enhance the quality and efficiency of our business and we continue to invest successfully in new stores."
 Sainsbury's Supermarkets and Savacentre
 Sales rose by 12.6 percent to 8.9 billion pounds, and market share grew by 0.7 to 11.3 percent. Sales inflation of 2.5 percent was at its lowest level for six years. New stores performed well and net of closures contributed just over two-thirds of the total sales increase. Sales in existing stores grew by 3.8 percent reflecting the value of the Sainsbury's offer and the extension of Sunday shopping.
 Over 1,400 new own brand lines were introduced and over 1,000 existing lines were redesigned or reformulated.
 Operating profit increased by 19.1 percent to 752 million pounds as a result of strong sales and tight control of costs. Sales and operating profit per full time equivalent employee increased by 6.3 percent and 11.7 percent, respectively, while customer service levels were improved. In the next two years the implementation of several major new computer systems will further enhance customer service.
 Homebase
 Homebase achieved considerable success in highly competitive market conditions, and at a time when most other DIY operators were reporting a reduction in operating profits. Homebase's sales increased by 9.8 percent to 283 million pounds and operating profit by 16.3 percent to 17.8 million pounds. Seven new stores opened in the year, one of which was a replacement, raising the total number of Homebase stores to 70.
 Shaw's
 Shaw's suffered adversely from the continuing recession in the New England economy now in its third year. Shaw's profitability was also affected by the costs of new developments, including expansion of its new store opening program and reorganization of its distribution function. Sales increased by 2 percent to U.S.$1.85 billion while operating profits fell by 11.9 percent to U.S.$31.5 million. Seven new stores were opened during the year.
 Development for the Future
 Expenditure on new Sainsbury supermarket developments accounted for three-quarters of group capital investment U.S.$787 million. Due to our high level of expenditure in recent years, 43 percent of the sales area of Sainsbury's supermarkets is less than 5 years old. 23 new supermarkets were opened in the year and eight older stores closed. A similar program of new store openings is envisaged for the foreseeable future.
 Staff
 The group employs 119,800 staff, 5,900 new jobs having been created during the year. Of 103,000 staff employed in the U.K. over 82,000 will share in the success of the business through the group's profit sharing allocation of 58.6 million pounds.
 Dividends
 The directors are recommending a final dividend of 7.30 pence which will result in an increase in dividend per share of 14.3 percent for the year.
 -0- 5/12/93
 /CONTACT: Christopher Leaver of J Sainsbury plc, in London, 44-71-921-6577, or 44-71-921-6000/


CO: J Sainsbury plc ST: IN: REA SU: ERN

PS -- NY012 -- 7348 05/12/93 07:48 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 12, 1993
Words:685
Previous Article:QUIDEL REPORTS RECORD SALES FOR THE FOURTH QUARTER AND YEAR
Next Article:LUMEX, INC. REPORTS ON CYBEX DIVISION DISCUSSIONS WITH AMERICARE HEALTH GROUP, INC.
Topics:


Related Articles
SAINSBURY'S REPORTS PRELIMINARY RESULTS FOR 1991/92
SAINSBURY'S ANNOUNCES INTERIM RESULTS
SAINSBURY'S REPORTS INTERIM RESULTS; SALES UP 10.9 PERCENT
J SAINSBURY PLC ANNOUNCES PRELIMINARY RESULTS 1993/94
SAINSBURY'S PRE-TAX PROFITS RISE TO POUNDS STERLING 444 MILLION
SAINSBURY'S INCREASE SALES AND PROFIT; HIGHEST RETAIL TURNOVER IN UK
SAINSBURY'S ANNOUNCE INTERIM RESULTS 1995/96
SHAW'S SUPERMARKET PARENT COMPANY, J. SAINSBURY, ANNOUNCES YEAR-END RESULTS
J Sainsbury plc Announces Group Interim Results.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters