Sainsbury’s Raises Free Cash Flow Outlook After Strong Q3 Christmas Sales Growth

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Sainsbury’s raised its free cash flow outlook after third-quarter and Christmas-period sales growth, and reaffirmed its retail underlying operating profit guidance. Management attributed the performance during the 16-week period to its ‘best Christmas execution’ in nine years, citing strong collaboration with suppliers and farmers.

1. Strong Q3 Sales Growth and Christmas Execution

For the 16 weeks to January 3, J Sainsbury plc delivered year-on-year group sales growth of 3.5%, with like-for-like sales excluding fuel up 2.8%. Sales in the core grocery division rose 3.9%, driven by a 4.1% increase during the Christmas trading period. CEO Simon Roberts described this as the best Christmas execution in his nine years at the company, citing seamless supply-chain coordination and promotional effectiveness that boosted festive meal occasions and convenience channel growth.

2. Raised Free-Cash-Flow Outlook and Profit Guidance Reaffirmed

Following the strong trading performance, Sainsbury’s raised its full-year free-cash-flow outlook by £150 million to £1.35 billion, reflecting improved working-capital management and disciplined capital expenditure. The group also reaffirmed its retail underlying operating profit guidance of £1.25 billion to £1.30 billion, underpinned by continued price investment and efficiency gains across its store estate and e-commerce operations.

Sources

WS