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Sainsbury’s has reported that statutory profits after tax jumped 55.3% to £393m for the year ended 28 February, despite cautioning on economic uncertainty caused by geopolitical tensions in the Middle East.
The retailer saw grocery sales rise by 5.2% during the period, contributing to total sales of £25.9bn.
While the supermarket group’s underlying operating profits experienced a 1.1% decline to £1.02bn, this figure is said to reflect “significant” operating cost inflation and increased investment in pricing.
General merchandise sales at Argos rose 0.7% to £4.1bn, which management noted was due to a “persistently subdued” market for non-essential items.
In light of this performance, Sainsbury’s forecasts total underlying operating profits between £975m and £1.07bn for the 2026/27 financial year. Directors noted that this figure was influenced by recent events in the Middle East.
Finally, the group noted that it had increased pay for staff by 5% and maintained its Aldi Price Match scheme to remain competitive during the cost of living crisis.
Simon Roberts, chief executive of Sainsbury’s, said: “More and more customers are choosing Sainsbury’s for more of their shopping, trusting us to deliver great value day in day out. The conflict in the Middle East means customers are even more focused on the cost of living and we are absolutely committed to making sure everyone gets the best possible value when they shop with us.
“By staying relentlessly focused on the things that matter most – value, quality, availability and service – we have outperformed the market for the sixth year in a row. Rather than pass through the full extent of cost inflation, we invested to sustain the strength of our competitive position while also refreshing stores, improving digital experiences and increasing colleague pay by 5%.”
He added: “We have committed to invest more than £5bn in British and Irish farming over the coming years, making our supply base more resilient at a time of increased challenges. We will do everything we can to support our customers and colleagues over the coming months, with absolute focus on keeping prices low.”
