Sainsbury’s profits drop despite Argos merger boost
Sainsbury’s has warned of “uncertain” impact of cost pressures, as it unveiled its preliminary results in the year to 11th March that saw its profits before tax slip by 8.2% to £503 million.
Sainsbury’s profits before tax slipped by 8.2% to £503 million in the year to 11th March.
The supermarket retailer saw a 12.7% rise in group sales to £29.1 billion, partly thanks to the acquisition of Argos last year, but like-for-like sales marked a 0.3% decrease to 0.6%.
Supermarket food sales declined by nearly 2%, however groceries online grew by over 8% and convenience rose by over 6%.
Reporting on the results, Sainsbury’s argued that it was “well-placed to navigate the external environment”, outlining its four key priorities for the future, among which is further enhancing its “differentiated food proposition”.
Sainsbury’s chief executive Mike Coupe described the period as a “pivotal year” for the group, arguing that it has made “significant progress delivering and accelerating” its strategy.
He added: “Food is the core of our business and we are committed to helping customers live well for less.
“Our food business remains resilient in a challenging market and we continue to innovate in quality and to invest in price.”
Commenting on the group’s acquisition of Argos, Coupe explained that Sainsbury’s is accelerating plans to open “a total of 250 Argos Digital stores in Sainsbury’s supermarkets and will deliver our £160 million EBITDA synergy target by March 2019, six months ahead of schedule”.
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