The financial results for the 52 weeks to 25 March 2006 reflect the first full year of solid progress on the Making Sainsbury's Great Again plan.
- Sales (inc VAT) from continuing operations up 5.8 per cent to £17,317 million (2004/05: £16,364 million) and up £722 million before petrol and Sainsbury's Bank, a significant step towards the commitment to grow sales by £2.5 billion announced in the Making Sainsbury's Great Again plan
- Sales (ex VAT) from continuing operations up 5.7 per cent to £16,061 million (2004/05: £15,202 million)
- Full year Easter adjusted like-for-like sales growth excluding petrol up 3.7 per cent and 4.1 per cent including petrol
- Retail underlying operating profit up to £352 million (2004/05: £308 million); the benefits of operational gearing have started to come through, with the improvement in retail underlying operating profit margins reflected in the 14.3 per cent underlying operating profit growth in 2005/06
- Sainsbury's Bank underlying operating loss of £10 million (2004/05: profit of £17 million) due to increased provisioning for bad and doubtful debts
- Underlying profit before tax from continuing operations up 12.2 per cent at £267 million (2004/05: £238 million)
- One off operating costs of £152 million (2004/05: £497 million) were incurred during the year, relating to the Business Review, IT insourcing and debt restructuring
- Profit before tax from continuing operations was £104 million (2004/05: £238 million loss)
- Underlying basic earnings per share from continuing operations increased by 26.5 per cent to 10.5 pence (2004/05: 8.3 pence) and basic earnings per share from continuing operations increased to 3.8 pence (2004/05: 17.4 pence loss)
- Underlying net debt1 improved year on year by £77 million despite the additional one off pension contribution made during the year of £110 million and the unwinding of the Easter benefit within 2004/05
- A final dividend of 5.85 pence per share is proposed; up 3.5 per cent (2004/05: 5.65 pence)