Sainsbury’s has posted growth in half-year sales and profit as the food business goes from “strength to strength”
The supermarket chain’s retail underlying operating profit was up 3.7% on a year-on-year basis to £503m in the 28 weeks to September 2024.
Total retail sales excluding fuel grew to £16.29bn, up 3.1% year-on-year. Sainsbury’s sales improved 4.6% in the period with grocery sales up 5%.
General merchandise and clothing sales fell 1.5% and Argos sales declined 5%.
Looking ahead the retailer said it remains confident in ”delivering strong profit growth in the full year, with continued leverage from Sainsbury’s grocery volume growth and a stronger Argos H2 performance.”
The supermarket said it expects retail underlying operating profit to grow between 5% and 10% to between £1bn and £1.06bn in the full year.
Simon Roberts, chief executive 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.
“Reflecting our leading quality, more customers are choosing Taste the Difference, with sales up 18%, the strongest premium private label growth in the market. And with the biggest-ever increase in customers’ value perception, we’re outperforming the market across the whole basket, particularly in core fresh food categories.
“Our grocery volume growth has delivered strong profit leverage at Sainsbury’s, partially offset by a tough first quarter at Argos. Argos trading has improved through the second quarter and in more recent weeks, so we continue to expect to deliver strong retail underlying operating profit growth and free cash flow generation for the full year.
“With strong momentum and increasing confidence in the strength of our grocery offer, we’re now investing to bring the best of Sainsbury’s to more people in more locations, including the recent acquisition of eleven Homebase and two Co-op stores.
“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. 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.”
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