We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

J Sainsbury posts profits increase

Non-food items grow at three times rate of food

Article comments

J Sainsbury posted strong profits on Wednesday up 8.1 percent to £332 million, outperforming the market with increased market share helped by the relaunch of its own brand products and growth in non-food items.

An acceleration in Sainsbury's expansion plans helped the UK’s third largest supermarket cope with a tough economic outlook, the chief executive said on Wednesday.

Chief Executive Justin King said “further productivity savings, tight control on operating costs, together with our strong sales performance have all helped to deliver good profit growth”. 

The government's ambitious plans to cut public spending has retailers concerned that the hit would deter consumers from spending in the months ahead. However Sainsbury's CEO said it was upbeat on its future prospects.

"We're in a good position to continue to perform well, notwithstanding that tough environment," King told reporters on a conference call, after the company reported first-half profit which met analysts' forecasts.

Sainsbury is opening new stores outside its heartlands in the south of England, as well as expanding online and into convenience shopping and non-food ranges such as clothing.

Total sales rose 7 percent to £11.94 billion in the six months to 2 October 2010 compared with sales of £11.16 billion for the same period last year.

The interim dividend was up 7.5 percent to 4.3 pence a share.

The group said non-food ranges such as clothing and homewares grew at three times the rate of food, while online grocery sales were up over 25 percent and convenience store sales surpassed £1 billion.

Finance Director John Rogers said he was also comfortable with analysts' full-year profit forecasts of about £660 million and said this would equate to a tick up in the margin improvement to between 17 and 18 basis points.



J Sainsbury posts profits increase
Financial Planning

Budget: What business wants

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..

Co-operative Group posts £2.5bn loss

Annual loss the worst in its 150 year historymore ..

Google sees 19% rise in Q1 revenue

However, company missed analysts' expectation as ad prices slidmore ..

Starbucks to move Europe HQ to UK

Coffee chain says move reflects growing importance of UK marketmore ..

Stay ahead of the curve

CFOs used to low interest rates ignore working capital optimisation at their perilmore ..

Digital streamlining of travel and expense claims [Part II]

Concur shows CFOs how to make life easier when the auditors come knockingmore ..

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

In Depth
What every company needs to do about big data?

What every company needs to do about big data?

In the first of a three part series, Pat Brans explores just how big 'big data' will get? more ..


* *