Sainsbury’s, the UK’s third-largest grocer, has reported higher annual profits after “outperforming” its rivals.
Net profit was up 2.7% at GBP614m (US$950.4m) for the year to 16 March as Sainsbury’s achieved its highest share of the UK grocery market for a decade, according to Kantar Worldpanel data.
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On a reported basis, pre-tax profits fell 1.4% to GBP788m thanks to fewer property disposals. However, excluding property proceeds, Sainsbury’s said underlying pre-tax profits increased 6.2%.
Sales were up 4.6% at GBP25.63bn. Like-for-like sales excluding fuel but including VAT increased 1.8%.
Sainsbury’s claimed its results showed “significant market outperformance” in the last year.
Chief executive Justin King said Sainsbury’s had reported “good growth in sales and profit”. He added: “Our key points of difference, such as the best quality own-brand, [loyalty scheme] Nectar, [price comparision programme] Brand Match, coupon-at-till and industry leading service, are recognised by our customers. Whilst we see no near term change in the current economic situation, we remain confident that by continuing to invest in our long-standing strategy and by understanding and helping our customers, we are well positioned for future growth.”
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By GlobalDataSainsbury’s, meanwhile, confirmed plans to take full ownership of its Sainsbury’s Bank venture with Lloyds Banking Group.
Shares in Sainsbury’s, which are up over 13% since the start of 2013, were down 1% at 392.53p at 09:11 BST.
Click here for the full release from Sainsbury’s and click here for a round-up of what some retail analysts thought of the retailer’s numbers. Or, for further coverage of the results and Sainsbury’s drive in convenience, click here.
