Top story
Sainsbury’s has entered the golden quarter in good shape as its premium Taste the Difference offering helped boost sales in the first half.
CEO Simon Roberts said the supermarket was outperforming the market across the whole basket, particularly in core fresh food categories.
He added more customers were choosing Taste the Difference, leading to an 18% rise in sales of the own-label brand, which he claimed was the strongest premium private label growth in the market.
Retail sales at Sainsbury’s, excluding fuel, increased 3.1% to £16.3bn in the 28 weeks to 14 September, with growth held back by a poor performance at Argos, where sales fell 5% year on year, and a 1.5% decline in general merchandise.
However, the group registered grocery sales growth of 5% in the half and like-for-like sales rose 3.4%.
“Our food business is going from strength to strength and we’re making the biggest market share gains in the industry, with continued strong volume growth,” Roberts said.
“More and more customers are coming to us for their big food shop, recognising our winning combination of value, quality and service.”
The performance helped underlying operating profits increase 3.4% to £503m, with strong Sainsbury’s and Nectar growth partially offset by a lower Argos contribution.
Sainsbury’s remained confident of delivering strong profit growth in the full year and maintained guidance at between £1bn and £1.1bn.
“As we head into the festive season, there is real energy and excitement at Sainsbury’s and Argos and we’re expecting another strong performance,” Roberts added.
Shares in the supermarket opened down by 1.1% to 265p this morning.
Morning update
Tate & Lyle has returned to volume growth in the first half as the group hailed a “strong” financial performance in the six months to 30 September.
Volumes in sucralose increased 20% and by 6% in the food & beverage solutions division.
Revenues at the group decreased 7% to £775m in the half as it passed on input cost deflation.
Adjusted EBITDA rose 6% to £188m.
CEO Nick Hampton called it a “momentous six months for Tate & Lyle”.
“The combination with CP Kelco, preceded by the sale of Primient, transforms our business into a fully-focused speciality food and beverage solutions business directly aligned to attractive structural and growing consumer trends for healthier, tastier and more sustainable food and drink,” he added.
Kitwave will take a £2m hit to its cost base thanks to changes to national insurance announced in the Budget, the wholesaler said this morning in a pre-close trading update.
The group will mitigate this additional cost through efficiencies and other savings in the current financial year.
Kitwave said it had been “another excellent year” in the 12 months to 31 October, with sales in line with market expectations.
No comments yet