Sainsbury's First Half Profits Hit £433m

Written By Unknown on Rabu, 13 November 2013 | 16.01

Sainsbury's has announced a 9.1% increase in first half pre-tax profit to £433m as it battles Asda to be Britain's second-biggest supermarket chain behind Tesco.

Total sales including VAT and fuel rose 4.4% over the 28 weeks to September 28 - by 4% when the effects of fuel sales were stripped out.

On a like-for-like basis, which measures continuing operations, sales rose 1.4%.

The company said its strategy focused on own brand products alongside online and convenience store growth was resonating with customers.

Online grocery sales rose by 15% in the half, while convenience store sales increased over 20%.

Sainsbury's said it had now enjoyed 35 consecutive quarters of underlying sales growth, continuing to outshine Tesco, which last month posted a 1.5% fall in first half UK trading profit.

Its share of the grocery market rose to its highest level in a decade at 16.8%.

The chain, which operates more than 1,100 supermarkets and convenience stores, has been the only one of the big four supermarkets to grow its market share amid pressure from discounters Aldi and Lidl.

Chief executive Justin King warned that customer budgets remain tight and that the economic recovery may take time to translate into stronger household confidence.


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