Sainsbury’s raises full year profit outlook after better than expected first half
Sainsbury’s has upped its guidance for full year profit after a better than expected performance in its first half.
In the 28 weeks to 13 September, Sainsbury’s reported a 5.2% increase in sales (excluding fuel), helped by grocery sales growth of 5.3%. Argos and the retailer’s general merchandise and clothing categories also posted uplifts, with sales rising by 2.3% and 3.3% respectively.
Retail sales, excluding VAT and fuel, climbed by 4.8% to £15.6 billion.
Meanwhile, retail underlying operating profit came in ahead of expectations at £504 million, up 0.2% year-on-year, reflecting the strong trading and ongoing cost efficiencies.
As a result of the performance, Sainsbury’s now expects its full year retail underlying operating profit to be more than £1 billion, which is ahead of the previous guidance of “around” £1 billion.
Simon Roberts, chief executive of J Sainsbury plc, said: “We started this year with one clear priority – to sustain the strong competitive position we have built over the last five years.
“We have delivered on this in the first half, with focused and effective investment to ease cost-of-living pressures, keeping price inflation behind the wider market and delivering our winning combination of great value, trusted quality and leading service.”
Looking ahead, he added: “Our offer has never been stronger. So while we expect the market to remain highly competitive, our momentum gives us real confidence as we head into Christmas and we have strengthened our profit guidance today.”
