Sainsbury's raises profit forecast despite warning on tough times

Summarised from 3 outlets · Updated 22 Oct, 08:08 · Archive

Sainsbury's has raised its full-year profit forecast whilst reporting slowing sales growth and warning of difficult conditions ahead.

Sainsbury's lifted its full-year profit guidance despite a slowdown in sales growth. The UK's second-largest supermarket increased the lower end of its profit target from £965m to £1.025bn, with an upper range of £1.065bn. Like-for-like sales growth slowed in the three months to September to 1.2 per cent, down from 2.3 per cent previously. Grocery sales growth decelerated to 2.2 per cent from 3.5 per cent, whilst general merchandise and clothing sales decline narrowed from 3.7 per cent to 2.9 per cent.

Chief executive Simon Roberts told shareholders that 'many households are finding things tough at the moment' amid pressure on consumer budgets. The company said its 'consistent strength of our customer offer' is driving gains in market share despite tough conditions. Sainsbury's has benefited from pricing measures including its Nectar Prices loyalty scheme and Aldi Price Match comparison offer. Total revenues increased 4.1 per cent to £16.2bn for the 28 weeks to September, with grocery sales up 2.9 per cent to £13.2bn.

Roberts, who became chief executive in 2020, has focused the grocer on its food offering. The company sold struggling retailer Argos to Swift Partners for £120m in July, which Roberts said would help create a 'simpler, more focused Sainsbury's'. Premium Taste the Difference range sales grew by more than six per cent, driving food category growth.

How it is being reported

• Sainsbury’s improves profit outlook as grocery sales growBut boss Simon Roberts stressed that ‘many households are finding things tough at the moment’ amid pressure on consumer budgets.Independent Business · 22 Oct, 07:52
• Sainsbury’s improves profit outlook as grocery sales growBut boss Simon Roberts stressed that ‘many households are finding things tough at the moment’ amid pressure on consumer budgets.Evening Standard · 22 Oct, 07:52
• Sainsbury’s warns on ‘tough’ trading conditions as sales growth slowsSainsbury’s has lifted its profit targets for the full year even as it reported slowing sales and warned of “tough” conditions in the coming months. The UK’s second-largest supermarket said the “consistent strength of our customer offer” is driving sales growth and gains in market share, despite chief executive Simon Roberts warning that “many households [...]City AM · 22 Oct, 07:31

In this story: Sainsbury's · Simon Roberts · Swift Partners · Argos · Aldi

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