Sainsbury’s profits beat expectations after a bumper Christmas
J Sainsbury’s said it will report better-than-expected profit for the year through March after a strong Christmas season, with better-than-expected operating results in the said commodities business. general and financial services.
The UK’s second-largest supermarket chain is expected to make at least £720m in pre-tax profits, up from a previous forecast of £660m given in July.
Lower prices and higher operating cost inflation will be “compensated by structural cost savings and stronger-than-expected grocery volumes,” the company said.
Argos, the general merchandise chain that increasingly operates from within Sainsbury’s supermarkets, benefits from “higher margins supported by reductions in switching operating costs” while Sainsbury’s Bank problems in the past “operating beyond expectations”.
In the six weeks to January 8, grocery sales were 0.1% higher than last year, but up 6.8% from the same period two years ago. Total sales were down 2.9% year over year, but up 2.4 from two years ago. Comparison between the years affected by the decision to close all stores on Thanksgiving Day 2021.