Louise

Despite much of the focus on the failed merger, Sainsbury’s delivers an impressive set of results addressing many of the key concerns that have led to the negative sentiment and exceeding expectations.  Cost efficiencies are finally rewarding investors – 8% per cent hike in profits and dividend whilst strong cash flows is strengthening the balance … Read more

The grocery market enjoyed a record £2.5bn spend over the Easter period as warm weather and the late Easter bank holiday boosted sales. Sainsbury’s retook second place by market share having been surpassed in March but saw sales decrease 1.2%. Tesco maintained its position as market leader with more than three quarter of British households … Read more

CMA block  merger  > Extensive competition concerns Supermarkets: Over 500 stores overlap –  c.50% of the supermarket portfolio Disposals unlikely to address concerns – neither suitable purchaser nor a package of assets could be found Discounters not an effective alternative to one-stop supermarkets Online: Only three operators (Tesco, Sainsbury’s, Asda) has national presence via store pick … Read more

SUPR view – another set of great results for Tesco as life under CEO Dave Lewis continues to bare fruit Cost cutting and improving margins have boosted profitability LFL sales up 2.9% Continued strong performance from Booker (LFL+11%) Online grocery sales grew by 2.8% YOY Profit before tax up 28.8% to £1.6bn Group operating margin … Read more

SUPR view: LFL food sales up 4.4%, the highest recorded in 7 years Growth driven by the acquisition of Nisa wholesale Provides ability to supply 4,000 independent Nisa stores Revenue up 14%. Pre tax profit up 27% Overall group growth held back by 1% reduction in funeral business Read more

Updated: Apr 10, 2019 Morrisons on target with strong results. SUPR view: Group LFL sales up 5% Total revenue up 3% Profit before tax up 10% EPS up 8% Further special dividend of 4p declared – full year total dividend up 25% to 12.6p  Store impairments reversal £66m  Wholesale partnership with McColl’s proving successful – on … Read more

SUPR summary: Sales up 1.2% to £6.8bn Online grocery sales jumped 14% during the year, following ‘significant investment’ in Waitrose.com as well as as new smarthphone apps Commentary: “We have strengthened our online business significantly in recent years, and said last summer that we will double Waitrose.com within five years. This change will be a … Read more

Tesco has revealed the full impact of the new lease accounting standard on their balance sheet. SUPR view: IFRS 16 adjustments in line with expectations Total debt up £10.5bn due to lease liability  Total “lease adjusted” debt increases to £15.8bn or 4x EBITDA   Creates incentive on Tesco to buyback property ie lease interest rate 5.8% … Read more

– LFL sales up 1.0% in Q4 – Net sales up 2.7% in the same period – Own brand products drive drive sales – CMA provisional merger findings expected this week Read more