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Sainsbury’s has revealed it has returned to profitability in the 28 weeks to 18 September 2021.
During the period, the group generated pre-tax profits of £541m compared with a previous year’s loss of £137m which the group attributed to “significantly lower” restructuring and impairment costs.
Group revenue rose to £15.7bn from £14.9bn the previous year and was boosted by strong grocery sales which grew by 0.8%, meanwhile, digital sales remained unchanged at £5.8bn.
However, at Argos, sales were down 7.3% year-on-year with its recent performance being impacted by supply challenges, unseasonal weather and lower demand for home office equipment and technology in the second quarter.
The grocer said that despite the current climate, it remains “well placed” to deal with a backdrop of global supply challenges and a tight labour market.
The group expects to report underlying profit before tax of at least £660m in the financial year to March 2022.
Simon Roberts, chief executive of Sainsbury, said: “Whilst customers are returning to many pre-pandemic shopping habits, online sales have remained very strong and we continue to grow market share. At the same time, our plan to transform Argos is on track, delivering significantly improved profitability.
“Our industry faces labour and supply chain challenges. However our scale, advanced cost saving programme, logistics operations and strong supplier relationships put us in a good position as we head into Christmas.”
He added: “I would like to thank all my colleagues and all our suppliers for their hard work, commitment and dedication in the weeks ahead to ensure we deliver the best possible Christmas for our customers.”
