J Sainsbury plc (SBRYN) Q2 2027 Earnings Report
MX:SBRYN Q2 2027 EPS Results
- Actual EPS
- MXN 2.89
- Consensus EPS
- MXN 2.82
- Beat/Miss
- Beat by +MXN 0.08
- One Year Ago EPS
- MXN 1.99
MX:SBRYN Q2 2027 Revenue Results
- Actual Revenue
- MXN 408.80B
- Expected Revenue
- MXN 435.06B
- Beat/Miss
- Missed by -MXN 26.25B
- YoY Revenue Growth
- -7.61%
Earnings Announcement Details
- Quarter
- Q2 2027
- Date
- 10/22/2026
- Time
- Before Open
- Conference Call
- Thursday, October 22, 2026
J Sainsbury plc's next earnings date is estimated for April 22, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2027 Earnings Call Summary
The call was predominantly positive. Sainsbury's reported grocery volume growth, market share gains, higher underlying profit, strong cash generation, improved customer value and availability, growth in online and OnDemand channels, and continued progress in Nectar, technology, and cost savings. The main challenges were subdued market volumes, tough comparatives, declines in General Merchandise and Clothing, increased competition and promotional activity, Argos disposal and separation costs, lower Financial Services contribution expectations, and emerging fresh-food input-cost pressure.
The company expects underlying operation profit from continuing operations of between GBP 1,025 million and GBP 1,065 million, with the central point of the range indicating profit growth of 2% in the second half; it expects continuing operations underlying net finance costs to be around GBP 300 million-GBP 310 million in 2026/2027, free cash flow of more than GBP 500 million in 2026/2027 and at least GBP 1.6 billion over the three years to 2027, and continuing cash capital expenditure between GBP 750 million and GBP 800 million in 2026/2027. Financial Services is expected to contribute around GBP 10 million to continuing operations profit growth for the full year versus the previously guided GBP 20 million, with at least half of the GBP 40 million of incremental income expected next year, roughly another GBP 10 million of incremental income from Financial Services next year; the company expects to return more than GBP 600 million of cash to shareholders this year, expects Argos full-year operation profit to be in line or ahead of last year, and expects the Argos transaction to complete in February 2027, with full separation expected by February 2029.
- Strong First-Half Grocery PerformanceSainsbury's delivered continued grocery volume growth, market share gains, and profit growth in the first half. Grocery sales increased 2.9%, total Sainsbury's sales grew 2.6%, and total continuing-operations sales grew 4.5% including fuel.
- Improved Value Proposition and Customer SavingsSainsbury's reported a strong value position, improving against most key competitors. Its offer included the biggest Aldi price match in the market, Nectar Prices on almost 11,000 products, and Your Nectar Prices, through which customers have saved GBP 250 million since launch in 2021. Customers save GBP 16 on average on a big trolley shop.
- Strong Availability During Extreme WeatherFresh food availability was 2 percentage points higher than the other full-choice grocers during a summer that included five record heat waves. The company said its teams maintained strong availability despite temperatures reaching 38 degrees Celsius and pressure across fresh-food supply chains.
- Food Quality and Innovation MomentumSainsbury's expects to launch more than 2,000 new and improved products this year, its biggest innovation program ever, including more than 700 Taste the Difference and Discovery products. Taste the Difference sales have increased nearly 50% over the last four years, while the Discovery range doubled this year and is expected to exceed 200 products by year-end.
- Fresh Food Growth and Store InvestmentFresh food sales increased more than 4% in the first half. Sainsbury's opened 14 convenience stores and two supermarkets, invested in around 170 stores, and said the invested stores delivered stronger volume growth and higher customer satisfaction scores than the rest of the estate.
- Improved General Merchandise ProductivitySainsbury's rationalized General Merchandise range and space to create greater fresh-food capacity. Volume per General Merchandise stocking point increased 10% in the first half, while sales per stocking point were also reported as up 6% in General Merchandise. The streamlined Toys range generated 13% sales growth.
- Long-Term Supplier Agreements and Supply-Chain ResilienceBy the end of 2026, 60% of products across fresh produce, dairy, meat, fish, and poultry are expected to be covered by long-term agreements. Sainsbury's said its cost-of-production models provide producers with predictable profit margins and greater certainty to invest.
- Underlying Profit and Earnings GrowthUnderlying operating profit from continuing operations increased 3.6% from GBP 507 million to GBP 525 million, reflecting volume growth, balanced customer investment, and continued cost-saving delivery. Underlying profit increased 5.2%, while underlying earnings per share rose 10.4%, supported by a lower underlying tax rate and the reduced share count from buybacks.
- Strong Cash Flow and Shareholder ReturnsFree cash flow increased by GBP 57 million year-on-year to GBP 333 million in the first half. Sainsbury's continues to expect more than GBP 500 million of free cash flow in 2026/2027 and remains on track to deliver at least GBP 1.6 billion over the three years to 2027. The company expects to return more than GBP 600 million to shareholders this year, including a GBP 300 million share buyback and a proposed interim dividend of GBP 0.41 per share.
- Raised Lower End of Full-Year Profit GuidanceSainsbury's now expects continuing-operations underlying operating profit of between GBP 1,025 million and GBP 1,065 million, compared with the equivalent previous range of GBP 965 million to GBP 1,065 million. Management said the midpoint implies profit growth of 2% in the second half.
- Improved Capital Returns and Balance-Sheet MetricsReturn on capital employed improved by 20 basis points year-on-year to 9.2%. Net debt to EBITDA was broadly unchanged year-on-year at 2.6x, within the target range of 2.4x to 3x. Continuing cash capital expenditure guidance was reduced to GBP 750 million-GBP 800 million from GBP 800 million-GBP 850 million, reflecting the movement of Argos to discontinued operations.
- Online and OnDemand GrowthGroceries Online sales increased 9% in the first half, while Food OnDemand grew 27%. ChopChop sales increased 34%, ahead of the marketplace OnDemand platform. OnDemand rollout was largely completed across more than 1,400 supermarkets and convenience stores.
- Nectar and Retail Media ExpansionDigital Nectar users increased 9%, and 17% more customers accessed personalized offers through Your Nectar Prices each week. Nectar participation across supermarkets and Groceries Online was moving toward 90%. Nectar360 remains on track to deliver GBP 100 million of incremental income, while Pollen had delivered more than 600 campaigns for around 100 clients and the in-store media network had more than 3,500 digital screens, with close to 5,000 expected by year-end.
- Demonstrated Retail Media Campaign ReturnsA Diet Coke and The Devil Wears Prada campaign reached 8 million customers and delivered a 3.7 times incremental return on advertising spend. Nectar360 also became the first U.K. retail and media business to be accredited and independently audited against the IAB Europe Commerce Media Measurement Standards.
- Clothing Offer and Back-to-School PerformanceAlthough the overall clothing market remained subdued, Tu outperformed the wider clothing market, with stronger availability and improved customer perceptions of style. Sainsbury's delivered its best-ever back-to-school performance, with sales up 8%, supported by the rollout of RFID across clothing.
- Argos Sale and Strategic SimplificationSainsbury's agreed to sell Argos to Swift Partners, with completion expected in February 2027 and full separation expected by February 2029. Management said the transaction will enable greater focus on the core Food business, while Argos continues its transformation under dedicated ownership. Argos's full-year operating profit is expected to be in line with or ahead of last year.
- Cost-Saving and Technology ProgressSainsbury's remains on track to deliver its GBP 1 billion cost-saving target over three years, taking total savings to GBP 2.3 billion over six years. Its optimized reduction algorithm has delivered a double-digit million-pound saving, facial recognition trials reduced logged incidents by 46%, and more than 90% of identified offenders did not return to stores. Self-checkout video analytics were operating in nearly 600 stores, and SmartShop had 20% more handsets year-on-year.
- Healthier Food Choices and Fresh-Food ResetSainsbury's introduced new products, reformulated ranges, and improved nutritional visibility on packaging to make healthier choices easier. It completed its biggest fresh-food range reset in six years, adding capacity in categories including dairy, produce, protein, meat, fish, and poultry in response to changing customer preferences.
MX:SBRYN Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Apr 22, 2027 | 2027 (Q4) | 3.10- | 3.02 | ― | ― |
| Oct 22, 2026 | 2027 (Q2) | 2.822.89 | 1.99 | 45.57% (+0.91) | |
| Apr 23, 2026 | 2026 (Q4) | 2.973.02 | 3.12 | -3.23% (-0.10) | |
| Nov 06, 2025 | 2026 (Q2) | 2.541.99 | 2.67 | -25.47% (-0.68) | |
| Apr 17, 2025 | 2025 (Q4) | 2.993.12 | 2.84 | 9.73% (+0.28) | |
| Nov 07, 2024 | 2025 (Q2) | 2.792.67 | 2.59 | 2.91% (+0.08) | |
| Apr 25, 2024 | 2024 (Q4) | 2.642.84 | -0.86 | 432.35% (+3.70) | |
| Nov 02, 2023 | 2024 (Q2) | 2.542.59 | 2.79 | -7.21% (-0.20) | |
| Jul 04, 2023 | 2024 (Q1) | ―- | 3.15 | ― | |
| Apr 27, 2023 | 2023 (Q4) | 2.77-0.86 | 3.15 | -127.20% (-4.00) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.