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Notes to the accounts
at 3 April 1999
1 Segmental analysis of turnover, profit and net assets
40 J Sainsbury plc Annual report and accounts 1999
1999 1998
56 weeks 52 weeks
Turnover Turnover
excluding Net excluding Net**
taxes Profit assets taxes Profit* assets
£m £m £m £m £m £m
Food retailing – UK 13,074 793 4,595 11,629 765 4,413
Food retailing – US 1,970 56 505 1,697 38 505
DIY retailing – UK 1,187 76 452 1,053 56 426
Banking – UK 158 (5) 100 66 (15) 83
Property development – UK 32 9 130 36 6 32
Other – UK 12 3 10 19 4 33
16,433 932 5,792 14,500 854 5,492
Exceptional cost of sales – Texas Homecare integration costs (21) (28)
Year 2000 costs (30) (20)
Profit sharing (45) (44)
Group operating profit 836 762
Associated Undertakings 12 38 16 151
Profit on sale of properties 11 3
Profit/(loss) on disposal of associate/subsidiary 84 (12)
Net interest payable (55) (78)
Group profit before tax 888 691
Non-operating assets and liabilities*** (437) (401)
Net borrowings**** (704) (1,077)
Total net assets 4,689 4,165
* Restated for new accounting standard.
** Restated for new accounting standard and separate disclosure of non-operating assets and liabilities.
*** Non-operating assets and liabilities principally represents accruals for tax, dividends and profit sharing.
**** Net borrowings include cash and current asset investments, excluding those of Banking.
Intra-group sales between the Group’s business segments are not material. Total administrative expenses amounted to £481 million
(1998: £421 million) including Year 2000 costs and profit sharing. Total cost of sales amounted to £15,116 million (1998 – restated:
£13,317 million) including exceptional cost of sales.
Turnover is disclosed by origin. There is no material difference in turnover by destination.
Group
1999 1998
Net margin on tax exclusive sales:*
UK 6.06% 6.37%
US 2.84% 2.24%
Group 5.67% 5.89%
* Based on operating profit before profit sharing, Year 2000 costs and exceptional cost of sales.