Sainsbury’s raises full year profit outlook as grocery sales grow 2.9%
Sainsbury’s has upgraded its full year profit outlook after posting stronger grocery sales in its first half.
In the 28 weeks to 12 September, sales from continuing operations, excluding fuel, rose by 2.6% to £14 billion after grocery sales grew by 2.9 % due to continued volume growth and lower inflation.
Subscribe to TRBIn contrast, general merchandise and clothing sales fell by 3.4% to £0.8 billion following a reduction in general merchandise space and a subdued clothing market.
During the period, underlying operating profit from continuing operations rose by 3.6% to £525 million, helped by volume growth, ongoing cost savings and balanced investment in value, quality, availability and service.
However, Sainsbury’s reported a statutory loss after tax of £164 million, compared with a profit of £155 million a year earlier, which was mainly due to discontinued operations.
Simon Roberts, chief executive of J Sainsbury, said: “We know many households are finding things tough at the moment and we’re making it easier for customers to enjoy good food every day, whatever their budget. That’s why more people are choosing us for their weekly shop, driving continued volume growth in the first half.
“We’re delivering trusted value for customers. Through Nectar Prices and the biggest Aldi Price Match in the market, Sainsbury’s is helping customers save on the products they buy most often and inflating behind the market.
“Innovation is powering our progress. We’re bringing more choice and exciting new food to customers and expanding ranges in more stores.
“Our long-term relationships with British farmers and suppliers help us deliver the food customers love at great value, while giving producers a predictable profit and the confidence to invest and plan for the future.
“My huge thanks go to our colleagues, farmers and suppliers whose passion, expertise and commitment make this possible every day.”
During the half year, Sainsbury’s agreed the sale of Argos to Swift Partners in a £120 million deal as it looked to focus on its food business. The transaction is expected to complete by the end of February 2027, with full separation expected by February 2029.
The company has now lifted the lower end of its full year profit guidance from £965 million to £1.025 billion with an upper range of £1.065 billion.
Roberts said: “As we progress the sale of Argos and further sharpen our focus on food, we are building a simpler, more focused Sainsbury’s. With great value, outstanding quality and exciting new food across our ranges, we’re looking forward to helping customers enjoy a really special Christmas.”
