J Sainsbury Plc · LSE:SBRY
J Sainsbury — FY2024/25 Earnings Presentation
74 slides from J Sainsbury's earnings presentation, April 2025
Slide 1: Preliminary Results 2024/25
Preliminary Results 2024/25
Slide 2: Next Level Sainsbury's
Introduction Next Level Sainsbury’s We make good food joyful, accessible and affordable for everyone, every day First choice Loyalty More Argos, Save and for food everyone more often invest loves to win Attract many more people Build a world-leading Unleash and transform Save £1 billion and to choos
Slide 3: Building on strong foundations
Introduction Building on strong foundations At our most Re-invigorated Growing long- Record Enhanced Nectar Investing in data, competitive: passion for food term supplier availability, capabilities technology and £1 billion price innovation partnerships extending leading building automation investme
Slide 4: We have fundamentally strengthened our business over the last four years
Introduction We have fundamentally strengthened our business over the last four years Value perception1 Quality perception 2 Food availability 3 +370 bps +190 bps over four over four years years +200 bps over four years 20/21 21/22 22/23 23/24 24/25 20/21 21/22 22/23 23/24 24/25 20/21 21/22 22/23 23
Slide 5: More and more customers are choosing Sainsbury's for their main food shop
Introduction More and more customers are choosing Sainsbury’s for their main food shop Significant growth in Biggest market share gains primary customers 1 in over a decade 2 Growth in primary customers – 24/25 vs 20/21 Volume market share 3 20% 13.0 % 12.8 % 10% 12.6 % 0% 12.4 % Sainsbury’s Tesco A
Slide 6: Strong performance in year one of our Next Level strategy
Introduction Strong performance in year one of our Next Level strategy Delivering Profit leverage On track with cost savings ambitions Sainsbury’s £1bn savings over Next Level plan profit growth3 15.3% £349m RUOP growth2 Sales Sales 7.2% growth1 growth1 4.2% 3.1% Total Retail Sainsbury’s 24/25 25/26
Slide 7: Strong performance in year one of our Next Level strategy
Introduction Strong performance in year one of our Next Level strategy Investing in growth and efficiency, delivering higher shareholder ROCE improvement 1 returns and maintaining leverage Capital Expenditure Shareholder returns Net debt/ EBITDA2 9.0% 8.3% 814 825 2.6 2.6 200 Buyback 306 308 Dividen
Slide 8: Our Commitments
Introduction Our Commitments Food volume growth ahead of the market Deliver profit leverage from sales growth Customer satisfaction higher 26/27 vs 23/24 £1bn cost savings over three years to 26/27 Colleague engagement higher 26/27 vs 23/24 £1.6bn+ retail free cash flow over three years to 26/27 Del
Slide 9: Accelerating into the year ahead
Introduction Accelerating into the year ahead Committed to Delivering Celebrating 25 Scaling our Investing in Structural cost sustaining our biggest space years of Taste personalisation technology and reduction and strong growth in over a the Difference capabilities and automation productivity compe
Slide 10: Financial Highlights
Financial Highlights Bláthnaid Bergin Chief Financial Officer
Slide 11: Our financial framework
Financials Our financial framework £ Food volume growth + Robust profitability SG&A/sales reduction + + Strong sustained cash flows Disciplined capital investment + = Measured reinvestment in the customer proposition Focused capital allocation = Strong sustained cash flows = Profit leverage and Enha
Slide 12: Retail sales growth by category
Financials Retail sales growth by category Sainsbury’s sales growth1 Argos sales growth2 Total Retail sales growth FY24/25 FY24/25 FY24/25 Argos 4.2% 3.1% Fuel 1.4% Excl. Fuel Inc. Fuel sales sales growth growth (2.7)% (8.9)% Total Sainsbury’s 1. Excl. Fuel, inc. VAT 2. Including Republic of Ireland
Slide 13: Retail sales growth by category
Financials Retail sales growth by category Sainsbury’s sales growth1 Argos sales growth2 Grocery Sainsbury’s General Merchandise and Clothing H1 H2 (0.6)% 5.0% 4.0% 1.5% H1 (1.5)% H2 (5.0)% H1 H2 1. Excl. Fuel, inc. VAT 2. Including Republic of Ireland (ROI) J Sainsbury plc April 2025 Preliminary Re
Slide 14: Retail underlying operating profit
Financials Retail underlying operating profit Retail underlying Sainsbury’s 2025/26 Guidance operating profit operating profit1 We expect to deliver Retail underlying operating profit + 7.2% of around £1 billion £1,036m £966m Argos operating profit1 FY FY FY FY FY FY 23/24 24/25 23/24 24/25 23/24 24
Slide 15: Financial Services
Financials Financial Services Total underlying operating profit1 Expenses 2 2025/26 Guidance We expect Financial Services underlying operating profit on a continuing basis of around £10 million Income and £29m Other 3 £30m FY FY 23/24 24/25 1. Inclusive of discontinued operations 2. Includes Total C
Slide 16: Financial Services
Financials Financial Services Financial Services phased withdrawal Sale of personal loan, credit Sale of Argos card & retail deposit portfolios Financial Services AFS deal completed to NatWest Group announced. cards portfolio to & Assets transferred Due to complete May 2025 NewDay announced to NewDa
Slide 17: Underlying profit before tax
Financials Underlying profit before tax UPBT YoY movement1 Earnings per Share2 UPBT up up 4.5% YoY 2025/26 Guidance £70m £1m £(11)m 8.6% YoY We expect an underlying tax 23.1p rate of around 30 per cent. Financial Finance 22.1p Retail Services costs £761m We expect underlying net £701m finance costs
Slide 18: Items excluded from underlying results
Financials Items excluded from underlying results FY FY £m 2024/25 2023/24 Retail restructuring programme (128) (95) 2025/26 Guidance Impairment of non-financial assets (16) - We expect to incur non- underlying cash costs relating IAS 19 pension income 28 44 to Retail restructuring Other 30 (86) pro
Slide 19: Cash flow metrics
Financials Cash flow metrics Working Capital Net debt Net debt Retail Free Cash Flow movement excluding leases including leases FY FY FY FY £639m 23/24 24/25 23/24 24/25 £262m £531m £98m £(200)m £(5,554)m £(264)m FY FY FY FY £(5,758)m 23/24 24/25 23/24 24/25 J Sainsbury plc April 2025 Preliminary Re
Slide 20: Net debt and Retail free cash flow
Financials Net debt and Retail free cash flow FY FY £m 2024/25 2023/24 Net cash from operating activities 1,805 1,921 of which underlying working capital movements 98 262 2025/26 Guidance of which pension cash contributions (45) (44) We expect to generate more than £500 million of retail Capital exp
Slide 21: Capital expenditure
Financials Capital expenditure 2025/26 Guidance £800m We expect core retail cash capital expenditure (excluding Financial Efficiency Services) in 2025/26 of £800m to £850m. £600m Maintenance £400m Growth £200m Homebase & Co-op stores £0m 23/24 24/25 25/26e J Sainsbury plc April 2025 Preliminary Resu
Slide 22: Balance sheet metrics
Financials Balance sheet metrics Net debt / EBITDA1 Return on capital employed 2 3.4 9.0% 3.3 8.4% 3.2 3.1 7.4% 3.0 8.3% 7.4% 7.6% 2.6 2.6 5.6% 18/19 19/20 20/21 21/22 22/23 23/24 24/25 18/19 19/20 20/21 21/22 22/23 23/24 24/25 Guidance FY 25-27 commitment: We continue to target leverage of net debt
Slide 23: Shareholder returns
Financials Shareholder returns Dividend per Share Free Cash Flow 2025/26 Guidance £531m • Share Buyback programme of at 13.6p 13.1p £200m Buyback least £200m in 2025/26 • We expect to return bank disposal proceeds of £250m via special dividend in H2. The special £308m Dividend dividend will be accom
Slide 24: Summary
Financials Summary What we’ve delivered Looking in FY 24/25 ahead • Sustaining our strong competitive • Grocery volume growth and operating leverage position • Continued investment into growth and efficiency • Continued market outperformance • Enhanced cash returns to shareholders • Strong cash gene
Slide 25: Building on strong foundations
Building on strong foundations Simon Roberts Chief Executive
Slide 26: First choice for food
First choice First choice for food for food • More food choice for more customers Attract many more people to • Consistent value, every day choose Sainsbury’s as the place they come to for good food – and • The leader in freshness, availability play a leading role in creating a and innovation sustai
Slide 27: Strong volume performance
Building on strong foundations First choice Strong volume performance for food FY24/25 Two-year Two-year Grocery volume growth volume growth c.5% Q1 Q2 2023/24 2023/24 Q3 Q4 Q1 Q2 Q3 Q4 2023/24 2023/24 2024/25 2024/25 2024/25 2024/25 J Sainsbury plc April 2025 Preliminary Results 2024/25 27
Slide 28: Sustaining our competitive value position
Building on strong foundations First choice Sustaining our competitive value position for food Significant improvement in value index versus all competitors since start of Food First1 Expansion of Nectar Prices Growing Aldi Price Match April 2025: April 2025: Aldi Lidl Morrisons 10,000 >9,000 800 >7
Slide 29: Strongest Premium Own Label growth in the market
Building on strong foundations First choice Strongest Premium Own Label growth in the market for food Sainsbury’s Asda Tesco Lidl Morrisons M&S Market Aldi Waitrose Source: Kantar Panel, Total FMCG (excl. Kiosk and Tobacco), Premium Own Label tier, YoY % value growth, 52 weeks to 2 March 2025 J Sain
Slide 30: Taste the Difference sales to reach £2bn+ in FY25/26
Building on strong foundations First choice Taste the Difference sales to reach £2bn+ in FY25/26 for food c.1 in 3 baskets >50% of our product Celebrating 25 years contain Taste the Difference innovation of Taste the Difference products1 is in Taste the Difference in 2025 1. Kantar Panel, Total FMCG
Slide 31: Playing a leading role in creating a more sustainable food system
Building on strong foundations First choice Playing a leading role for food in creating a more sustainable food system Creating a culture Supporting and inspiring of collaboration customers to make healthy and long-term and sustainable choices partnerships with suppliers Announced 10-year partnershi
Slide 32: Continued outperformance on customer satisfaction
Building on strong foundations First choice Continued outperformance on customer satisfaction for food Leading customer service Biggest long-term improvement in availability Customer satisfaction, supermarkets 1 4-year change in availability of products customer satisfaction measure2 Sainsbury’s Sai
Slide 33: Our biggest investment in space in over a decade
Building on strong foundations First choice Our biggest investment in space in over a decade for food New store openings ‘More for more’ Propositional in target locations space rebalances changes +c.3% Food space in 25/26 Customer experience ROCE Quality Value Cost to serve +15 Supermarkets Trading
Slide 34: Transforming our Convenience stores
Building on strong foundations First choice Transforming our Convenience stores for food Delivering sales growth Reconfiguring space, optimising range and improving value +4% Market share1 Value2 YoY +20 bps +2 ppt YoY YoY Availability2 Service2 +4 ppts +3.5 ppts YoY YoY FY FY 23/24 24/25 1. Nielsen
Slide 35: Continuing to strengthen Online and OnDemand
Building on strong foundations First choice Continuing to strengthen Online and OnDemand for food Positive customer response to Online sales growth improvements in Groceries Online OnDemand sales growth Overall Satisfaction1 Sainsbury’s +7% Tesco +c.80% YoY YoY Morrisons Asda Q4 Q4 23/24 24/25 Overa
Slide 36: Driving an improved performance in Clothing
Building on strong foundations First choice Driving an improved performance in Clothing for food Improving Womenswear: focus on sales performance design and availability FY FY 24/25 24/25 +2.9% +5% 7% 3% H1 H2 23/24 24/25 24/25 24/25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 J Sainsbury plc April 2025 Preliminary Res
Slide 37: Growing Smart Charge participation
Building on strong foundations First choice Growing Smart Charge participation for food Ultra-rapid electric vehicle charging network, powered by Sainsbury’s >75 >600 Locations Charging bays • Delivering double-digit revenue growth month-on-month • 25% of all electric vehicles entering Smart Charge
Slide 38: Loyalty everyone loves
Loyalty Loyalty everyone loves everyone loves • Personalised, rewarding and integrated loyalty • Joy and connection beyond transactions Build a world-leading loyalty platform – more personalised, • World-leading Nectar360 capabilities joyful, rewarding and transparent – for everyone • Strong coaliti
Slide 39: We're taking Nectar to the Next Level
Building on strong foundations Loyalty We’re taking Nectar to the Next Level everyone loves Reward customers Algorithms A winning Insight that Targeting Retail media with points and AI coalition enables deeper capabilities to connect and £ improving customer to enhance customers with customer unders
Slide 40: The "Power of Purple" is resonating with customers
Building on strong foundations Loyalty The “Power of Purple” everyone loves is resonating with customers Nectar Prices key driver of improved value perception1 +12 % pts >9,000 £13 £2bn >85% March FY Nectar prices Average saving Customer savings Nectar 2023 24/25 offers now on an £80+ during partici
Slide 41: Market leading capabilities delivering personalised, rewarding, integrated loyalty
Building on strong foundations Loyalty Market leading capabilities delivering everyone loves personalised, rewarding, integrated loyalty >1m 2021 >60% Customers First to Advanced participated in Market leading market with Digital increase in app targeting Count up to personalisation personalised acc
Slide 42: Strong start to Next Level Nectar360 plan
Building on strong foundations Loyalty Strong start to Next Level Nectar360 plan everyone loves Growing the Leading on Strong growth from Digital Nectar coalition Data and Insights Retail Media offering eShops 97% 95% 95% 90% Partner Client Client Client satisfaction satisfaction satisfaction satisf
Slide 43: Innovating to deliver the next stage of growth
Building on strong foundations Loyalty Innovating to deliver the next stage of growth everyone loves Building high quality Retail Unifying our retail Ahead of plan to deliver at Media inventory media capabilities least £100m incremental profit +£100m additional profit by March 2027 • Accelerating co
Slide 44: More Argos, more often
More Argos, More Argos, more often more often • Famous for convenience Unleash and transform Argos around the three things that have always • Inspiring choice, always great value made it brilliant – curated range, • Supercharged digital capabilities famously convenient experience and great value – s
Slide 45: Challenging year: H2 improvement reflects strategic action
Building on strong foundations More Argos, Challenging year: more often H2 improvement reflects strategic action Argos Online Traffic, YoY growth % Argos Sales growth 1.9% Sales growth YoY% Q1 Q2 Q3 (1.4)% (1.4)% Q4 (7.7)% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023/24 2024/25 J Sainsbury plc April 2025 Preliminar
Slide 46: Taking action to improve performance
Building on strong foundations More Argos, Taking action to improve performance more often Moving Extending the dial on desirability our range breadth and quality Inspiring Customers • c.13,500 SDF products Stockless range expansion • Trade up • +43% increase YoY • Attachment Refocusing our Own Bran
Slide 47: Delivering operational efficiency and customer experience
Building on strong foundations More Argos, Delivering operational efficiency and more often customer experience Rightsizing standalone stores Digital Collection Points Efficient stockholding across Convenience • 12% reduction in net stock YoY • Implementing data driven insights to improve buying and
Slide 48: Save and invest to win
Save and Save and invest to win invest to win • £1 billion of structural cost reduction Save £1 billion and invest in transforming our capabilities – • Well-invested technology platform taking another big leap forward in protecting, competing and unlocking efficiency, productivity and the next level
Slide 49: Operating cost savings
Building on strong foundations Save and Operating cost savings invest to win On track to deliver £1.3bn savings delivered £1bn savings commitment c.£350m delivered in 24/25 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27 J Sainsbury plc April 2025 Preliminary Results 2024/25 49
Slide 50: High returning investments in technology driving efficiencies
Building on strong foundations Save and High returning investments in technology invest to win driving efficiencies Invest for Invest to Invest to Next Integration of general Level Shrink protection Protect Next phase of Compete merchandise network technology front-end strategy • Long-term investmen
Slide 51: Checkout optimisation delivering productivity and customer benefits
Building on strong foundations Save and Checkout optimisation delivering invest to win productivity and customer benefits Significant improvement in self-serve participation: Productivity growth: nearly three quarters of transactions self-served volume/ labour hours 100% SmartShop (28%) +9% 80% YoY
Slide 52: Delivering on cost and efficiency
Building on strong foundations Save and Delivering on cost and efficiency invest to win Productivity improved and service maintained Colleague service CSAT 1 Colleague pay 9.80% 12.50 increases 12.00 9.60% £12.00 • March 2025: £12.45 11.50 9.40% • August 2025: £12.60 90 bps Sainsbury’s hourly 11.00
Slide 53: Committed to continued outperformance
Committed to continued outperformance • Stronger and more competitive • Consistently delivering for customers • Investing to drive efficiency and support growth • Committed to sustaining our strong competitive position • Expect to continue to outperform the market J Sainsbury plc April 2025 Prelimin
Slide 54: Appendices
Appendices
Slide 55: Guidance for 2025/26
Appendix Appendix Guidance for 2025/26 Profit Tax rate • We expect to deliver Retail underlying operating profit of around £1 billion • We expect an underlying tax rate of around 30 per cent • We expect to deliver Financial Services underlying operating profit of around £10 million on a continuing b
Slide 56: Capital allocation framework: long-term value creation
Appendix Capital allocation framework: long-term value creation Invest in the business to support FY25-FY27: £800-£850m capex per annum, 1 our strategy retail free cash flow £1.6bn+ A solid investment grade 2 balance sheet Target leverage of 3.0x-2.4x net debt/EBITDA Deliver strong dividends for 3 s
Slide 57: Sales growth by quarter
Appendix Sales growth by quarter 2023/24 2024/25 Like-for-like sales growth Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY Like-for-like sales (exc. fuel) 9.8% 6.6% 7.4% 4.8% 2.7% 4.2% 2.8% 3.7% 3.2% Like-for-like sales (inc. fuel) 3.9% 2.2% 5.3% 2.9% 2.4% 1.9% 0.0% 2.2% 1.5% 2023/24 2024/25 Total sales performance Q1
Slide 58: Total sales performance
Appendix Total sales performance 2023/24 2024/25 Total sales performance (£m) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY Sainsbury’s 7,707 5,650 8,395 3,809 8,029 5,940 8,706 3,964 26,639 Grocery 7,177 5,263 7,676 3,583 7,521 5,544 7,988 3,724 24,777 GM (Sainsbury’s) + Clothing 530 387 719 226 508 396 718 240 1,862
Slide 59: Sales performance by category and channel
Appendix Sales performance by category and channel FY FY FY 2024/25 Total sales1 performance 2024/25 2023/24 Change Proportion by category £m £m % % Sainsbury’s 26,639 25,561 4.2 74 Grocery 24,777 23,699 4.5 68 GM (Sainsbury’s) + Clothing 1,862 1,862 0.0 5 Argos 4,916 5,054 (2.7) 14 Total Retail sal
Slide 60: Retail margin
Appendix Retail margin As of 1 March 2025 FY FY 2024/25 2023/24 Change Retail sales (exc. VAT, inc fuel) £m 32,630 32,084 1.7% Retail underlying EBITDA1 £m 2,192 2,078 5.5% Retail underlying EBITDA margin % 2 6.72 6.48 24bps 3 Retail underlying operating profit £m 1,036 966 7.2% Retail underlying op
Slide 61: Cash flow and net debt
Appendix Cash flow and net debt FY 24/25 Cash Flow £m Non- Adjustments for underlying D&A, share based operating payments & other 98 cash flows1 1,223 2,259 Working (116) Capital capital (409) expenditure movements Net interest paid, corporation tax Lease (825) 45 repayments2 1,036 Proceeds Non-cash
Slide 62: Financial metrics
Appendix Financial metrics As of 1 March 2025 FY FY 2024/25 2023/24 Return on capital employed 1 9.0% 8.3% 2 Net debt to EBITDA 2.6x 2.6x Fixed charge cover 3 2.8x 2.7x Underlying tax rate 29.8% 26.7% 1. Return is defined as a 52 week rolling underlying operating profit. Capital employed is defined
Slide 63: Sainsbury's sales area and store numbers
Appendix Sainsbury’s sales area and store numbers As at 1 March 2025 Supermarkets Convenience Total Area Area Area (‘000 sq ft) Number (‘000 sq ft) Number (‘000 sq ft) Number 1 1 1 Opening figures 23/24 20,904 597 Opening figures 23/24 2,017 834 Opening figures 23/24 22,921 1,431 New stores 93 4 New
Slide 64: Sainsbury's store estate
Appendix Sainsbury’s store estate As at 1 March 2025 Number of stores Argos store numbers Sq ft Under 10,000 to 20,000 to 40,000 to Over As at As at sales area 10,000 20,000 40,000 60,000 60,000 Total 2 March New Disposals/ 1 March Convenience 855 0 0 0 0 855 2024 stores closures 2025 Supermarkets 4
Slide 65: Sainsbury's store openings and closures
Appendix Sainsbury’s store openings and closures FY 2024/25 H1 H2 Supermarket Convenience Supermarket Convenience New store New stores New stores New stores Winchburgh Liverpool – Princes Dock Bishopton Dargavel Village Wavendon - Eagles Rest Lenzie - Millersneuk Road Bradwell – Bluebell Meadow Alsa
Slide 66: Plc Board
Appendix Plc Board Martin Scicluna Simon Roberts Bláthnaid Bergin Jo Bertram Brian Cassin Chair Chief Executive Chief Financial Officer Non-Executive Director Senior Independent Director Jo Harlow Adrian Hennah Tanuj Kapilashrami Keith Weed CBE Nick Grant Non-Executive Director Non-Executive Directo
Slide 67: Plc Board
Appendix Plc Board Martin Scicluna Simon Roberts Bláthnaid Bergin Chair Chief Executive Chief Financial Officer Date of Appointment: Date of Appointment: Date of Appointment: March 2019 (joined the Board November 2018) June 2020 (joined the Operating Board July 2017) March 2023 Skills and experience
Slide 68: Plc Board
Appendix Plc Board Jo Bertram Brian Cassin Jo Harlow Non-Executive Director Senior Independent Director Non-Executive Director Date of Appointment: Date of Appointment: Date of Appointment: July 2022 July 2022 (joined the Board April 2016) September 2017 Skills and experience Skills and experience S
Slide 69: Plc Board
Appendix Plc Board Adrian Hennah Tanuj Kapilashrami Non-Executive Director Non-Executive Director Date of Appointment: Date of Appointment: April 2021 July 2020 Skills and experience Skills and experience Adrian joined the Board on 1 April 2021. He is Chair of the Audit Tanuj joined the Board on 1 J
Slide 70: Plc Board
Appendix Plc Board Keith Weed CBE Nick Grant Non-Executive Director General Counsel and Company Secretary Plc Board changes Date of Appointment: Date of Appointment: Katie Bickerstaffe and Steve Hare July 2020 July 2024 will join the Board as Non-Executive Directors following the Annual General Skil
Slide 71: Operating Board
Appendix Operating Board Simon Roberts Bláthnaid Bergin Rhian Bartlett Graham Biggart Chief Executive Chief Financial Officer Chief Commercial Officer Managing Director Argos, - Sainsbury's and Chief Strategy and Supply Officer Patrick Dunne Mark Given Prerana Issar Clodagh Moriarty Chief Property a
Slide 72: Operating Board
Appendix Operating Board Simon Roberts Rhian Bartlett Graham Biggart Patrick Dunne Chief Executive Chief Commercial Officer Managing Director Argos, Chief Property and Procurement Officer, - Sainsbury's and Chief Strategy and Supply Officer and MD Smart Charge See Appendix 13 Date of Appointment: Da
Slide 73: Operating Board
Appendix Operating Board Mark Given Prerana Issar Clodagh Moriarty Chief Marketing, Data and Sustainability Officer Chief People Officer Chief Retail and Technology Officer Date of Appointment: Date of Appointment: Date of Appointment: June 2020 May 2023 June 2018 Skills and experience Skills and ex
Slide 74: Supplementary financial details
Appendix Supplementary financial details 1. Weighted average number of shares 3. Dividend 4. Financial calendar FY FY 2024/25 2023/24 2024/25 2023/24 Q1 Trading Statement 1 July 2025 Interim 3.9p 3.9p (16 weeks to 21 June 2025) Weighted average number 2,330.6 2,334.8 of shares (m) Final 9.7p 9.2p In