EGX kicks off week higher on August 17    EGP inches down vs. USD at Sunday's trading close    EGX launches 1st phone app    Egypt achieves record primary budget surplus of EGP 629bn despite sharp fall in Suez Canal revenues    Escalation in Gaza, West Bank as Israeli strikes continue amid mounting international criticism    Egypt recovers collection of ancient artefacts from Netherlands    Resumption of production at El Nasr marks strategic step towards localising automotive industry: El-Shimy    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, UNDP discuss outcomes of joint projects, future environmental cooperation    United Bank achieves EGP 1.51bn net profit in H1 2025, up 26.9% year-on-year    After Putin summit, Trump says peace deal is best way to end Ukraine war    Egypt, Namibia explore closer pharmaceutical cooperation    Jordan condemns Israeli PM remarks on 'Greater Israel'    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egypt's FM discusses Gaza, bilateral ties in calls with Saudi, South African counterparts    Egypt prepares to tackle seasonal air pollution in Nile Delta    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egyptian, Ugandan Presidents open business forum to boost trade    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Sainsbury's Profit sees 17% Slump as Chief faces Embezzlement Battle in Egypt
Published in Amwal Al Ghad on 03 - 05 - 2015

Sainsbury's is set to announced a 17 per cent slump in its full-year profits this Wednesday, while it braces for an international battle against an Egyptian jail sentence imposed on its boss.
The beleaguered supermarket chain is expected to report pre-tax profits of just over £663 million, according to consensus estimates compiled by Reuters, down from £798 million the previous year.
"It reflects what has been a very challenging 2014, not just for Sainsbury's but for all mainstream grocers," said Darren Shirley, analyst at Shore Capital.
The decline in profits will be the latest dark cloud over the retailer, after an Egyptian court ruling emerged last week convicting chief executive Mike Coupe in absentia of embezzlement.
Sainsbury's told the Sunday Express that the Egyptian authorities have set a further hearing today, although the court process is unpredictable.
The case, which centres around a failed deal between Sainsbury's and a local partner in 2001, accuses Coupe of coming to Egypt last July to seize the local partner's cheques that had bounced.
The supermarket giant said that this is an "impossibility" as Coupe was in London that day.
"We have taken all necessary steps to appeal against these groundless claims and will continue to do so," it said.
The UK's four largest supermarkets, Sainsbury's, Tesco, Asda and Morrisons, have struggled to retain market share recently due to lower-priced entrants Aldi and Lidl, causing their profits and share prices to plummet.
Shirley warned that Sainsbury's, which last month cut 800 jobs, may have to slash more if it scales back labour-intensive services to reduce costs and compete with its cheaper rivals.
Investors are unlikely to be cheered either, as the firm is expected to trim its bumper dividend.
Last year Sainsbury's paid a full-year dividend of 17.3p a share, but Cantor Fitzgerald retail analyst Mike Dennis warned that it is likely to be cut.
"The fall in profit and squeeze on cash flow mean it is likely there will be pressure on Sainsbury's ability to pay the higher dividend," he said.
Rival Morrisons is releasing its first-quarter results on Thursday, with all eyes on new chief executive David Potts to see whether he will be announcing his strategy for the business going forward.
The latest Kantar data is expected to show a 0.5 per cent fall in Morrisons' total sales for the 12 weeks to April 26.


Clic here to read the story from its source.