J Sainsbury plc said it is on track to deliver annual retail earnings above £1 billion, after reporting a stronger-than-expected first-half performance that underscored its resilience amid fierce competition and rising costs.
The UK’s second-largest supermarket, which also owns Argos, posted underlying operating profit of £504 million for the 28 weeks to 13 September, slightly up from £503 million a year earlier and ahead of internal forecasts.
Pre-tax profit rose 5% to £271 million, supported by solid grocery sales and disciplined cost management.
Sainsbury’s had previously guided for flat full-year retail earnings of around £1 billion, citing price pressures from discount rivals and persistent cost inflation. However, in its interim results statement, the group said:
“While we will continue to make balanced choices to invest and sustain the strength of our competitive position through the most important trading period of the year, we now expect retail underlying operating profit of more than £1 billion.”
The upbeat guidance comes as UK businesses continue to urge the Bank of England to cut interest rates to ease borrowing costs and stimulate growth — though Sainsbury’s appears well-positioned even without monetary support.
