- Prachi Singh |
Sainsbury’s Group said, sales including VAT for the year ended March 11, 2017, increased 12.7 percent to 29,112 million pounds (37,727 million dollars) driven by the Argos contribution. General merchandise grew sales by over two per cent and clothing by over four per cent, outperforming the market.
Commenting on the company’s results, Mike Coupe, Group Chief Executive of J Sainsbury said in a statement, “This has been a pivotal year and we have made significant progress delivering and accelerating our strategy. Sainsbury’s Group offers customers market-leading product choice, value and convenience, whenever and wherever they shop with us. Sainsbury’s design-led general merchandise and clothing both outperformed the market.”
Underlying profit before tax was 581 million pounds (750 million dollars) offset by cost savings of 130 million pounds (167 million dollars) and a contribution from Argos of 77 million pounds (99 million dollars). Underlying basic earnings per share was 21.8 pence and full year dividend was 10.2 pence.
The company added that it continues to benefit from a one to two percent uplift in supermarket sales where there is an Argos Digital store. The company expects to deliver 160 million pounds (206 million dollars) EBITDA synergy target six months early and accelerating its plans to open 250 Argos Digital stores in Sainsbury’s supermarkets. Digital sales continued to grow with 53 percent of sales now made online, while mobile participation also grew 60 per cent this year.