Sainsbury’s pre-tax profits soar 123%

Sainsbury’s has confirmed its recovery plan is “on track” as it delivered a strong first-half performance with underlying profits increasing by over 60%…

Sainsbury’s has confirmed its recovery plan is "on track" as it delivered a strong first-half performance with underlying profits increasing by over 60%.

The UK’s third-largest retailer unveiled a massive 123% increase in pre-tax profits in the 28 weeks to October 7, rising from £87m to £194m, with underlying profits jumping to £189m before tax.

The supermarket, which is midway through its three-year recovery plan, delivered a jump in first-half sales up 8.3% to over £9.5bn.

Moreover, the retailer has delivered £1.3bn of additional sales over the past 18 months: a sign that it is on the way to meeting its target of boosting sales by £2.5bn within the three-year time frame.

The growth was largely driven by its focus on "quality fresh food" and "try something new" positioning while it also continued to build on its non-food offering.

Sainsbury’s chief executive Justin King, says: "A strong performance on food, together with good performances from online and non-food, have driven higher sales densities, which are up 5.6 per cent."

Sainsbury’s has also reached operating level break even at its banking arm, which posted an operating loss of £5m in the same period last year.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here