Financial performance

Sainsburys store in Dawlish, Devon

Financial performance

Group performance2015/16
£m
2014/15
£m
Change
%
Underlying results   
Group Sales (inc VAT) (1,2) 25,829 26,122 (1.1)
Retail Sales (inc VAT, inc fuel) (3) 25,502 25,813 (1.2)
Retail Sales (inc VAT, ex fuel)     0.4
Retail operating profit (4) 635 720 (11.8)
Financial Services operating profit (5) 65 62 4.8 
Net finance cost (6) (121) (107) (13.1) 
Share of JV profits (7) 8 6 33.3
Profit before tax (8) 587 681 (13.8)
Tax rate (9) 20.8% 25.8% 498 bps
Basic earnings per share (10) 24.2p 26.4p (8.3)
Full year dividend per share 12.1p 13.2p (8.3)
Statutory results   
Items excluded from underlying results (39) (753)  
Profit before tax 548 (72)  
  1. Underlying Group Sales (ex VAT): £23,495m (2014/15: £23,752m)
  2. Underlying Group Sales (inc VAT): Excludes an £11m acquisition adjustment fair value unwind relating to Sainsbury's Bank (2014/15: £23m)
  3. Retail Sales: (ex VAT) £23,168m (2014/15: £23,443)
  4. Underlying retail operating profit: Underlying profit before tax, underlying net finance costs and share of underlying post-tax results from joint ventures
  5. Underlying Financial Services operating profit:  Underlying profit before tax, 12 months to 29 February 2016
  6. Underlying net finance costs: Finance income/costs before financing fair value movements and the IAS 19 pension financing charge. 2015/16 net finance costs are stated inclusive of the 'perpetual securities' coupons (perpetual subordinated capital securities and perpetual subordinated convertible bonds) of £15m These are then added back to items excluded from underlying results in order to reconcile profit before tax with the statutory accounts
  7. Underlying share of post-tax results from joint ventures: The underlying share of post-tax results from JVs is stated before investment property fair value movements, financing fair value movements, and any profit or loss on disposal of properties 
  8. Underlying profit before tax: Profit before tax before any profit or loss on disposal of properties, investment property fair value movements, retail financing fair value moments, impairment of goodwill, IAS 19 pension financing element and defined benefit pension scheme expenses, acquisition adjustments and one-off items that are material and infrequent in nature, but after the coupons on the perpetual capital securities and perpetual convertible bonds
  9. Underlying tax: Tax attributable to underlying profit before tax
  10. Underlying basic earnings per share: Underlying profit attributable to ordinary shareholders, net of attributable taxation, divided by the weighted average number of ordinary shares in issue during the period, excluding those held by ESOP trusts which are treated as cancelled