The now revealed figures are the lowest first-half benefit subsequent to 2010 and down from £375m from a year prior.
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Underlying pretax profit fell 18 percent to 308 million pounds ($467 million), London-based Sainsbury said in a statement Wednesday, compared with the 294 million-pound median estimate of 14 analysts.
Sainsbury’s convenience stores grew sales by almost 11pc during the 28 weeks to 26 September and the group opened 37 of these stores during the period, taking the total to 741. This was down from £375 million recorded previous year but was still more than analysts had expected.
It said that despite a 1% decline in food sales, its Taste the Difference range delivered 2% volume growth. So far sales have beaten its expectations.
Supermarket group Sainsbury’s today said the grocery market remains “challenging” as it reported a slide in half-year profits. Because of Aldi and Lidl’s low price promise, food prices have fallen significantly as Sainsbury’s and other United Kingdom grocer’s try to deal with the harsh competition.
“We are making good progress against the strategy we outlined last November”, Sainsbury’s boss Mike Coupe said bravely. It has reduced the amount of sugar in its own-brand yoghurts and juices and launched a £10m, five-year project called Waste Less, Save More, to tackle food waste.
“I am confident we are making progress and we are looking forward to a successful Christmas, offering our customers fantastic products and great value”.
“We continue to run the business efficiently and our cost savings programme is ahead of plan”.
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Richard Hunter, the head of equities at Hargreaves Lansdown Stockbrokers, said: “There is little uncertainty that Sainsbury is enhancing various fronts, albeit general the organization remains a work in advancement”. “They have a real capacity for sales and profit growth, but this is just left on the table due to continuing poor instore execution”.
