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    Jordan condemns Israeli PM remarks on 'Greater Israel'    Egypt's Supreme Energy Council reviews power supply plans for 14 industrial projects    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    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    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egyptian pound closes high vs. USD on Tuesday – CBE    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 posts first Loss in Ten Years
Published in Amwal Al Ghad on 06 - 05 - 2015

British retailer Sainsbury's posted its first annual loss in a decade, hurt by property writedowns, deflation and an industry price war, and warned investors not to expect trading conditions to improve any time soon.
Chief Executive Mike Coupe said on Wednesday he expected deflation to persist in the grocery market for the rest of 2015 and possibly into 2016, and did not rule out further investment in price cuts beyond the 150 million pounds ($227 million) already committed to.
"The underlying pressures of the industry will remain from a deflation point of view and therefore you would expect that the underlying sales growth of the industry will be negative for the foreseeable future," he said.
"We have to plan on the downside and hope on the upside."
Shares in Sainsbury's, already down 14 percent over the last year, fell a further 2.8 percent.
Shore Capital analyst Clive Black said Sainsbury's may not have reached the end of its profit downgrade cycle.
"In particular, we are concerned that a revitalising Tesco may hit Sainsbury's trading patterns," he said, referring to signs of turnaround at Britain's biggest retailer.
Sainsbury's, along with rivals Tesco, Asda and Morrisons, is cutting prices to stem the flow of shoppers to discounters Aldi and Lidl.
All are also having to adapt as consumers shop more frequently and locally, and buy more online.
Sainsbury's made an underlying pretax profit of 681 million pounds in the year to March 14. That was ahead of analysts' average forecast of 659 million but down 14.7 percent from the 798 million made the year before.
After booking 753 million pounds of exceptional charges, mainly impairment charges on existing stores and the property pipeline announced alongside half-year results in November, Sainsbury's posted a statutory pretax loss of 72 million pounds.
Last month, property write downs were a major factor in Tesco reporting an annual loss of 6.4 billion pounds, one of the biggest in British corporate history.
Sainsbury's group sales fell 0.9 percent to 26.1 billion pounds, while sales at stores open over a year, excluding fuel, fell 1.9 percent.
Sainsbury's is cutting capital expenditure, costs and dividends to finance price cuts.
"We will remain competitive on price. If others move on price in the market, we will follow absolutely. We have the financial capacity and the flexibility to do so," said finance chief John Rogers.
Coupe reckons price cuts, simpler promotions and a focus on product quality and innovation, as well as expansion of Sainsbury's non-food, online and convenience businesses, can combat the threat from discounters and Tesco.
Sainsbury's is paying a full-year dividend of 13.2 pence per share, down 23.7 percent, in line with previous guidance.
Separately on Wednesday, industry data showed sales fell at all of Britain's big four grocers over the last three months.
Source: Reuters


Clic here to read the story from its source.