J Sainsbury Plc · LSE:SBRY
J Sainsbury — H1 2026/27 Earnings Presentation
13 slides from J Sainsbury's earnings presentation, October 2026
Slide 1: Financial highlights
Financial highlights Bláthnaid Bergin Chief Financial Officer
Slide 2: Our financial framework
Financials Our financial framework 01 02 03 Food volume growth Robust profitability Strong sustained + SG&A/sales reduction + cash flows + Disciplined capital investment + = Focused capital allocation Measured reinvestment in the customer proposition Strong sustained cash flows = Enhanced = and high
Slide 3: Total continuing sales growth
Financials Total continuing sales growth Sainsbury’s Total Continuing Sales growth 1,2,3 Sales growth2,3 17.8% H1 26/27 H1 26/27 4.5% 2.9% General 2.6% 2.6% Merchandise & Clothing Grocery Sainsbury’s Excl. Fuel Fuel 4 Inc. Fuel total continuing total sales growth continuing sales growth (3.4)% 1. Ex
Slide 4: Total continuing sales growth by quarter
Financials Total continuing sales growth by quarter Grocery 1 General Merchandise Sainsbury’s 1,2 and Clothing 1 3.5% 3.0% 2.2% 1.9% Q1 Q2 Q1 Q2 Q1 Q2 (2.9)% (3.7)% 1. Total sales in prior periods as previously presented plus commission on Financial Services 2. Excl. Fuel J Sainsbury plc October2026
Slide 5: Agreed sale of Argos to Swift Partners
Financials Agreed sale of Argos to Swift Partners Announcement of July agreed sale of Financial implications 2026 Argos to Swift • Argos now reported within non-underlying discontinued operations Partners • Cash proceeds of at least £120 million, expected to be offset by separation costs over the th
Slide 6: Argos discontinued operations pre-tax results
Financials Argos discontinued operations pre -tax results H1 H1 £m 2026/27 2025/26 Operating loss (8) (1) Loss on disposal: - - - Loss on classification as held for sale (215) - - Separation costs (102) - Restructuring and impairment costs (37) (4) Net finance costs (7) (8) Items excluded from under
Slide 7: Continuing operations underlying profit
Financials Continuing operations underlying profit H1 continuing underlying UPBT YoY Continuing 2026/27 operating profit 1 movement 1 underlying EPS 1,3 Guidance up 3.6% up 5.2% up 10.4% • We expect an £18m YoY YoY YoY underlying tax rate of £1m around 29 per cent Argos £525m £366m 11.7p £506m disco
Slide 8: Items excluded from continuing underlying pre-tax results
Financials Items excluded from continuing underlying pre -tax results H1 H1 £m 2026/27 2025/261 Retail restructuring programmes 8 (59) Impairment of non-financial assets - (1) IAS 19 pension income 9 16 Divestment costs (87) (2) Other 10 (18) Items excluded from underlying results – continuing opera
Slide 9: Cash flow metrics
Financials Cash flow metrics Free Underlying Capital Net debt 3 Cash Flow 1,2 Working Capital expenditure 1 movement 1,2 H1 H1 25/26 26/27 £447m £(81)m £(75)m £376m Excl. lease Excl. lease liabilities liabilities £333m £276 m £84 m £67m H1 H1 H1 H1 H1 H1 £(5,527)m £(5,634)m 25/26 26/27 25/26 26/27 2
Slide 10: Net debt and free cash flow
Financials Net debt and free cash flow H1 H1 £m 2026/27 2025/261 Adjusted net cash from operating activities 931 928 of which working capital movements 67 84 2026/27 of which pension cash contributions (14) (13) Guidance Capital expenditure (376) (447) • We expect to deliver more than£500 million of
Slide 11: Balance sheet metrics
Financials Balance sheet metrics Net debt / Return on 2026/27 Underlying EBITDA 1,2 capital employed 3 Guidance • We continue to target leverage of net debt to EBITDA 2.6x 9.2% of 3.0x to 2.4x 2.5x 9.0% H1 H1 H1 H1 25/26 26/27 25/26 26/27 1. Net debt and underlying EBITDA H1 2025/26 as previously re
Slide 12: Shareholder returns
Financials Shareholder returns Interim Dividend Shareholder Returns per Share 26/27 £100m £100m 4.1p 4.1p 2026/27 Bank proceeds remaining buyback Guidance £200m • We have completed £200 core buyback million of the previously announced £300 million £500m + share buyback, with the Free cash flow remai
Slide 13: Summary
Financials Summary • Underlying operating profit growth • Sustaining our strong competitive position in a more competitive grocery market • Underlying operating profit ofbetween • Free cash flow generation £1,025 million and £1,065 million in line with expectations • More than • Enhanced cash return