Sainsbury’s forecasts flat profits ahead despite 7.2% uplift in FY25
It also said it delivered £2bn in savings through the scheme this year, while expanding its digital and in-store retail media offer through Nectar360
Sainsbury’s has forecast flat profits for the coming year, revealing that it expects its operating profit to drop to around £1bn, below market expectations of £1.08bn.
This comes despite seeing its operating profits jump 7.2% to £1.036bn for the year ended 1 March 2025. Overall, the company posted a profit before tax of £384m, an increase of 38.6% year-on-year.
It also saw a slight uplift in revenue from £32.24bn last year up to £32.81bn in this year, an increase of 1.8%.
Alongside this, the supermarket posted sales, excluding fuel, of £26.6bn, an increase of 4.2% year-on-year. However, the company revealed that Argos posted full year sales of £4.9bn a decrease of 2.7%
The supermarket also revealed that it expects the impact of lowering prices in the face of heightened competition to be relatively small, forecasting that its underlying retail profit will fall by around £36m over the year as a result.
Sainsbury’ stated that it grew its Nectar Prices scheme to cover more than 9,000 products, with over 85% of customers now shopping with a Nectar card.
It also said it delivered £2bn in savings through the scheme this year, while expanding its digital and in-store retail media offer through Nectar360.
Simon Roberts, chief executive of J Sainsbury plc, said: “We’ve transformed our business over the past four years. We have created a winning combination of value, quality and service that customers love, investing £1 billion in lowering our prices. More people are choosing Sainsbury’s for their main grocery shop as a result, delivering our highest market share gains in more than a decade.
“We are committed, above all else, to sustaining the strong competitive position we have built – consistently giving customers the great value they have come to expect from Sainsbury’s – and we expect to continue to outperform the market.”
He added: “Our customer offer is the strongest it has ever been. We’ve expanded Aldi Price Match to more products than ever before in addition to offers on more than 9,000 products with Nectar Prices. Customer satisfaction with product availability is at record levels and we’re continuing to add more new, innovative products to our ranges.
“Nectar is taking our ability to create personalised value and loyalty to the next level and our long-term contracts with farmers and suppliers demonstrate our commitment to resilience and sustainability across the UK food system.”
