J Sainsbury 2016/17 interim results

DividendMax Ltd.

J Sainsbury 2016/17 interim results

Interim Results for the 28 weeks to 24 September 2016

Delivering against strategy, with a strong platform for growth

Like-for-like transaction growth across all channels and total volume growth

Differentiated food proposition offering customers market-leading choice, quality and value

General Merchandise sales growth of nearly five per cent

Clothing sales growth of nearly one per cent in a challenging market

Acquisition of Home Retail Group plc ('HRG') accelerates our strategy:

o c.250 Argos digital stores in supermarkets over the next three years

o 30 Argos digital stores and 200 digital collection points in supermarkets by Christmas

o Confident of delivering £160 million synergy target over three years

On track to deliver £500m cost savings target by 2017/18

New three-year £500m cost savings target from 2018/19

Net debt reduced by £485 million from March 2016 to £1.3 billion(1)

Interim dividend of 3.6 pence per share

New Sainsbury's Group provides a strong platform for growth, with four key priorities:

o Further enhance our differentiated food proposition

o Grow Clothing and General Merchandise and deliver synergies by integrating Argos

o Diversify and grow Sainsbury's Bank

o Continue cost savings and maintain balance sheet strength

Companies mentioned