Sainsbury’s maintains outlook as H1 profits rise by 4.7%

Sainsbury’s has reported that profit before tax rose by 4.7% to £356m in its half-year results, with underlying operating profit up by 3.7% to £503m, as the group maintained its outlook of “strong profit growth” for the full year.  

While the group reported that like-for-like retail sales rose by 3.4%, it said that “strong” Sainsbury’s and Nectar growth was partially offset by a lower Argos contribution.  

The group’s sales – excluding fuel – rose a total of 4.6%, with the grocery segment registering 5% growth. 

However, Sainsbury’s saw a sales decline of 1.5% in the general merchandise and clothing segment, while Argos and fuel sales each fell by 5% and 4.4% respectively.  

Looking ahead, the group said it continues to expect to deliver Retail underlying operating profits of between £1.01bn and £1.06bn in its full-year results, marking a growth of between 5% and 10%.

It added that its full-year results will be strengthened by continued leverage from grocery volume growth and a stronger Argos H2 performance.

Simon Roberts, CEO of Sainsbury’s, said: “Our food business is going from strength to strength and we’re making the biggest market share gains in the industry, with continued strong volume growth. More and more customers are coming to us for their big food shop, recognising our winning combination of value, quality and service. 

“Our brilliant colleagues and suppliers are at the heart of everything we do and I want to thank them for all their hard work as we set ourselves up to deliver a fantastic Christmas for our customers.” 

He added: “As we head into the festive season, there is real energy and excitement at Sainsbury’s and Argos and we’re expecting another strong performance. We remain very focused on delivering for our customers, communities and shareholders.”