Like-for-like sales climbed 5.9 per cent, excluding fuel, in the period. It was the ninth consecutive quarter of growth delivered by chief executive Justin King as he implements his Making Sainsbury's Great Again recovery programme. Total sales advanced 7.8 per cent.
The retailer's involvement in Red Nose Day accounted for approximately 0.3 per cent of overall growth and sales of fair-trade products surged 50 per cent.
King said the recovery drive 'is delivering substantial value for shareholders' and he was confident of further progress as the initiative enters its third year.
A private equity consortium headed by KKR is circling the grocer and has until April 13 to table an offer or walk away. Numis analyst Steve Davies was impressed by Sainsbury's performance. He said: 'This should certainly put the company in a stronger position as far as negotiations with the consortium are concerned and shows that management have not been distracted by the process.' He expected an 'opening shot' from the private equity groups at about 600p a share and believed Sainsbury's could generate profits of£1 billion by 2011.
Sainsbury's has renewed its contract for participation in the Nectar customer loyalty scheme.
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