Sainbury issued a promising trading statement last week but why no mention of margins? It's not alone with all the other multiples reluctant to cover margins in their quarterly updates. Good see that Marks gives them a mention.
Commentary at www.investorschampion.com

final div 11.20p ex div 16th may

RNS Number : 7411Z

Sainsbury(J) PLC

21 March 2012

Fourth Quarter Trading Statement for 10 weeks to 17 March 2012

Strong finish to a good year

-- Total sales for fourth quarter up 4.6 per cent (5.1 per cent excluding fuel(1) )
-- Like-for-like sales(2) for fourth quarter up 2.5 per cent (2.6 per cent excluding fuel(1) )
-- Like-for-like sales(2) for the year up 4.5 per cent (2.1 per cent excluding fuel(1) )
-- Achieved target 7.3 per cent gross space growth in the year
-- Convenience, online and non-food all growing ahead of market

Justin King, Chief Executive, said, "We delivered like-for-like sales of 2.6 per cent excluding fuel this quarter, completing a good performance for the year against a challenging backdrop. Our strategy of delivering universal customer appeal is succeeding in the current economic climate. Our unique own label ranges enable customers to save money when they need to and to treat themselves, their friends and families on special occasions. Through Brand Match, customers are increasingly aware of the great value Sainsbury's offers. They are inspired by Live Well for Less, which helps them find ways to make their money go further without compromising on quality. Our Nectar loyalty programme is a key source of customer insight, and we have signed a new long-term contract ensuring we retain this competitive advantage. We continue to outperform the market and gain market share.

Underpinning our performance is our quality food offer. We have invested over GBP85 million this year to make our fresh food better than ever, and this is delivering real results. Customers rate Sainsbury's best for great tasting food(3) . Our own label participation continues to lead the market(4) , reflecting Sainsbury's reputation for great quality at fair prices. Sales of basics grew by 10 per cent and Taste the Difference grew by almost 20 per cent. In the past year we have trained 18,000 of our colleagues in our Bakery and Food colleges, and their fantastic service, skills and expertise have resulted in sales from our counters growing faster than at any other retailer(5) .

We remain focused on ensuring our values make us different and are making good progress against the commitments we set out in our 20 by 20 sustainability plan. As the largest Fairtrade retailer in the world, we sold over GBP12 million of Fairtrade goods during Fairtrade Fortnight, 11 per cent more than last year. In the quarter we also announced our investment in Tamar Energy, a company set up to produce energy from organic waste. For the second year running Business in the Community has awarded Sainsbury's Platinum Plus status in its Corporate Responsibility Index, the top accolade.

Convenience, online and non-food are all growing ahead of the market, as our multi-channel offer means customers can do more of their shopping with Sainsbury's. Against difficult market conditions we are gaining market share in clothing and general merchandise. Our convenience business is growing at over 20 per cent, driven by a combination of new space and strong like-for-like sales growth. We are also the fastest growing online grocer. Sales continue to grow at over 20 per cent, with both basket size and order numbers increasing, and we now serve on average 165,000 customers a week. 'Click & Collect' is now in nearly 900 stores, with over half of customers choosing to pick up their online general merchandise orders in store.

In the quarter we added 170,000 square feet of gross new space, including two new supermarkets, three extensions, and 15 new convenience stores. This brings our total gross new space in the year to 1.4 million square feet, opening 19 new stores at an average size of just over 39,000 square feet, extending 28 stores by an average of 15,000 square feet, and opening 73 new convenience stores.

We have demonstrated that delivering quality and value is a compelling offer for customers. The economic climate is likely to remain challenging, and we are committed to helping customers make their money go as far as possible. Nonetheless, the Diamond Jubilee, Olympics and Paralympics are wonderful opportunities this year for the country to join together and celebrate, and we expect these to underpin our continued growth as customers trust Sainsbury's to make their celebrations really special. "

not one mention of share holders what pillock

Just closed here +26 - maybe a bit soon, but will do for me.

It's a trading statement, Tanker, and Mr King seems to have done quite well despite your best attempts to thwart him. Shareholders will figure in the annual report later on. A little bit of patience, please.

sold will look back in the near future made enough

Yes I see that T, 15th March post 121. Still holding on to mine.
2517

Still holding mine too.

Now George, fair play you didn't ask TANKER if he had sold ALL his shares on the 15th, you need to clarify at the time. Check out the RSA thread :O)

the answer is simple i never sell all i always keep enougn cash back to buy more if they dip below my low target

Tank - Probably sounds a bit pedantic to you, but would help to clarify if you actually stated Sold a % but still hold a few, rather than just saying SOLD.

Chris I read T's post 121 ''I sold out-----'', to be not of an ambiguous nature, especially as he went on to describe JK as the worst CEO in the top 250 co's.
I enjoy reading T's posts, no prevarication with him, and he appears to be a very generous guy to those who matter to him. T's investing style appears to be, buy for the dividend but sell before they go ex-div, thus reaping a capital gain from the upside in sp due to others buying for the divi. Good luck to him
The RSA thread I read and sometimes post, again an enjoyable thread.
2517

to make it clear i live on divs so i never sell my feed stock .
i then trade what ever i buy above the level i use for my living allowance .
hope that helps i take around 30k in divs per year ,
now to the budget osborne is going to it the pensioners on pensions of around 11k to 18k after 2014 the allowance is going it will be the income tax level of 10500 .
so the pensioners will kick out the torys in 2015 the gov must remember this pensioners can not get money by working they are old and not fit

tanks, not that it matters much, but i'm sure you contradicted that divi comment a week or two back ..... personally i'ld prefer capital gain 97% of the time

cynic you are right the only people buying shares for dividends used to be called investment trusts.

can't cope with you agreeing with me hali ROTFL

well the city does not like the budget

Supermarket chain Sainsbury reports annual profits on Wednesday -

- Of all of the big four supermarkets, Sainsbury's appears to faring the best. Only last week Morrisons published its first like-for-like sales fall in seven years, and Tesco 's woes have sent shock waves through the industry.

However, though trading appears to have been ticking along nicely at Sainsbury's, the figures are a little deceptive. In the last quarter of its financial year, sales increased by 2.3pc on a like-for-like basis. This is stronger than all of its competitors, but the measure includes the benefit of store extensions.

Some analysts fret that the company is spending too much about £1bn a year on capital expenditure and it should take a hint from Tesco and scale back its investment programme.

Justin King, chief executive, is unlikely to cut capital expenditure, but he is expected to highlight how tough the market remains.

Final Results.

Good sales and profit performance; outperforming the market

Financial summary

· Total sales (inc VAT) up 6.8 per cent to £24,511 million (2010/11: £22,943 million)
· Total sales (inc VAT, ex fuel) up 4.5 per cent, like-for-like sales (inc VAT, ex fuel) up 2.1 per cent
· Underlying profit before tax up 7.1 per cent to £712 million (2010/11: £665 million) (1)
· Underlying basic earnings per share up 6.0 per cent to 28.1 pence (2010/11: 26.5 pence) (2)
· Return on capital employed of 11.1 per cent (2010/11: 11.1 per cent) (3)
· Proposed full year dividend of 16.1 pence, up 6.6 per cent, cover 1.75x (2010/11: 15.1 pence, cover 1.75x)

Statutory

· Revenue (ex VAT, inc fuel) up 5.6 per cent to £22,294 million (2010/11: £21,102 million)
· Profit before tax down 3.4 per cent to £799 million (2010/11: £827 million)
· Basic earnings per share down 7.0 per cent to 32.0 pence (2010/11: 34.4 pence)

Operating highlights

· Outperformed the market, increasing market share to 16.6 per cent, the highest for nearly a decade (4)
· Price perception on branded groceries improving, driven by Brand Match
· New contract signed with Nectar, a key source of customer insight and loyalty
· Delivered over £100 million of operational cost savings
· Improved underlying operating margin by 4 bps (10 bps at constant fuel prices)
· Sector leader in FTSE4Good Index; top sector scorer across all dimensions
· Supermarket of the Yearand Convenience Chain of the Year at the 2011 Retail Industry Awards

Strategy highlights

· Great food: Good growth in our own label ranges, with Taste the Difference up 8.2 per cent and basics up 6.8 per cent. Over half way through re-launch of our core by Sainsbury's range with 3,700 products new or improved
· Compelling general merchandise and clothing: Continues to grow faster than our food business, gaining market share
· Complementary channels and services: £1.3 billion convenience business growing total and like-for-like sales well ahead of the market. Fastest-growing online food retailer with 20 per cent growth, now a £0.8 billion business. Click & Collect in over 900 stores with around 50 per cent of general merchandise orders now through this channel
· Developing new business: Sainsbury's Bank enjoyed another successful year with a 40 per cent increase in pre-tax operating profit
· Growing space and creating property value: Opened a further 1.4 million sq ft of gross space, adding 19 new supermarkets, 73 convenience stores and 28 store extensions. Property now valued at £11.2 billion(5)

..Questor share tip: J Sainsbury is focus on what matters for shareholders

By Garry White | Telegraph – 8 hours ago

Sometimes going all-out for growth is not in a company's best interests. The decision by J Sainsbury to slow its rate of store opening looks good for investors.

J Sainsbury 305.3p +4 Questor says BUY

The company has undergone a significant growth spurt in recent times, with retail space growing by a quarter over the past four years. The supermarket group will now expand its floor space by about 5pc a year. This will allow a better focus on cash management that should reward shareholders through higher dividends.

Indeed, Sainsbury (LSE: SBRY.L - news) is already yielding a tidy amount. In the year to March 2013 the prospective yield is 5.4pc, rising to 5.8pc next year. This should continue to support the share price.

Areas where the business is now focusing for growth are its convenience store format and its online offering.

Britain's third-largest grocer has lured shoppers into its stores with cheaper own-brand labels and has also gained market share in non-food. This meant that it managed to outperform the market over the past year, raising its market share to 16.6pc, the highest for nearly a decade.

In the year to March 17, total sales including VAT jumped 6.8pc to £24.5bn, although pre-tax profits slipped to £799m from £827m. However, when one-off items are excluded, profits rose 7.11pc to £712m.

The final dividend of 11.6p will be paid on July 13. This brings the annual payout to 16.1p, a rise of 6.6pc. Sainsbury now plans to increase the dividend cover to 2 times from 1.75 over the medium term, which will add to its already significant yield.

Of course, there are risks. The sector is getting increasingly competitive, with Tesco (LSE: TSCO.L - news) determined to fight back after its January profit warning.

The shares are trading on a March 2013 earnings multiple of 10.7, falling to 9.8 the following year. The average price target of the 13 City analysts monitored by Bloomberg is 311.15p, only marginally above current price.

First (OTC BB: FSTC.OB - news) tipped at 297.6p on November (Stuttgart: A0Z24E - news) 10 last year, and with the renewed focus on shareholder returns following the reining back of expansion plans and the support offered by the current yields, Questor remains confident with a buy rating