Sainsbury's releases transcript of analyst and investor call on Argos sale to Swift

• Sainsbury’s hosted an analyst and investor call on FY2026 developments, attended by CEO Simon Roberts and CFO Bláthnaid Bergin.
• Management outlined an agreement for Swift to acquire Argos, aiming to sharpen focus on Sainsbury’s core food business.
• Expected cash proceeds at least GBP 120 million, including at least GBP 70 million on completion targeted for February 2027.
• Separation costs expected to broadly offset proceeds; full separation targeted within two years, with costs split roughly 50/50 across two years.
• Underlying operating profit impact post-separation seen as broadly neutral; transaction expected to be accretive to underlying EPS.
• Long-term commercial agreements include Argos continuing store-in-store trading in Sainsbury’s locations; income streams described as non-volatile.
• Lease structure includes about GBP 250 million of Argos head leases moving off the group balance sheet; other lease obligations unwind over 3.5-4 years.
• CapEx guidance unchanged at GBP 800 million to GBP 850 million; retail free cash flow guidance reiterated at at least GBP 500 million.
• Argos defined benefit pension scheme transferred into Sainsbury’s; GBP 143 million surplus cited, with no payments made since 2024.

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