Pre-tax profits at Sainsbury’s have jumped to £371m for the 28 weeks ended September 18.
Higher grocery sales thanks to more people eating at home saw revenues rise 23% compared to the first half of 20/21.
The group expects pre-tax profits to be at least £660m in the financial year to March 2022.
Chris Daly, CEO of the Chartered Institute of Marketing,“successfully overcome supply chain issues in the short term at least.” He added: “The supermarket giant’s public advocacy and support of global efforts to combat climate change has been well received, especially in the build up to COP26.”
“However, with 63 per cent of consumers believing that many brands only get involved with sustainability for commercial reasons – as opposed to ethical ones – Sainsbury’s must be mindful to avoid accusations of ‘corporate grandstanding’ or greenwashing.
“If Sainsbury’s is to continue winning the hearts and minds of consumers, it must ensure its commitments are perceived as authentic and carefully tow the line between intentions and tangible actions.”
Sainsbury’s has proposed an interim dividend of 3.2p.
“Sainsbury posted positive results today with the company showing growth in the majority of sectors while continuing to focus on food items and improving competitiveness,” said Walid Koudmani, market analyst at financial brokerage XTB.
“While grocery sales increased and despite a strong growth in digital sales, general merchandise sales disappointed as the impact of lockdown was clearly felt in this sector. Overall, today’s report could reassure investors as it shows the strength and resilience of the company while highlighting the importance of having multiple strategies to contend with rising costs, supply shortages and labour issues.”
