Sainsbury’s warned underlying profit would be lower than expected this year amid “significant external pressures and uncertainties” including cost inflation and a squeeze on household incomes (The Financial Times £). The supermarket chain said yesterday that the investment required to keep its food prices competitive amid rising costs would take its toll on profits (The Times £). Sainsbury’s reported a jump in profits but said they will be hit in the year ahead by surging inflation and a drop in shoppers’ disposable incomes (The Daily Mail). Sainsbury’s has warned that its profits this year will be hit by soaring inflation and a fall in customers’ disposable incomes (Sky News). Profits at Sainsbury’s have more than doubled but the supermarket has warned it faces tougher times ahead as shoppers see their finances squeezed (The BBC).

Sainsbury’s has said its customers are starting to watch “every penny” as the cost of living crisis mounts, which combined with significant cost increases and difficulties with supplies will lower profits at the supermarket chain in the year ahead (The Guardian). Underlining the pressure facing households and businesses, the UK’s second-biggest grocer said it was battling to keep down the cost of everyday items such as milk, bread and fruit (The Daily Mail).

Lifting the prices of Magnums, Dove soap and Knorr products has helped to push up revenue at Unilever as the consumer goods group warns of “unprecedented inflation” caused by the war in Ukraine (The Times £). Unilever raised its prices more than 8% in the first quarter, cutting into the volume of products it sold as it said it expected inflation to accelerate in the second half of 2022 (The Financial Times £). Consumer giant Unilever has hiked prices to customers by more than 8% and warned it would raise them further after the war in Ukraine contributed to push input costs higher (The Daily Mail).

Indonesia’s blanket ban on palm oil exports puts Unilever in a pickle, writes The FT. As the world’s biggest buyer, spending €2.5bn last year, the UK-listed group is reliant on the oil for everything from soap to ice cream. Implicit in an Indonesian export ban is scarcity of supply and increased prices for the rest of the world, on top of rampant foodstuffs inflation. (The Financial Times £)

Amazon rattled Wall Street by unexpectedly announcing its first quarterly loss since 2015 and forecasting a slowdown in growth as people curtail their online spending in the face of rampant inflation (The Times £). A drop in online sales and rising costs have helped to push Amazon to its first loss since 2015 (The BBC). Amazon recorded its slowest-ever revenue growth in the first quarter amid a drop in online retail sales and heavy costs, and said its aggressive push to expand during the coronavirus pandemic had left it overstaffed and with excess capacity (The Financial Times £).

Amazon has suffered its slowest growth for two decades, knocking $150bn (£120bn) off its value on Thursday, as the pandemic internet shopping boom ground to a halt (The Telegraph). Amazon shares have taken a 10% hit after the e-commerce platform-to-streaming giant admitted it was struggling under a weight of costs that would knock its performance (Sky News). More than £100bn was wiped off the value of Amazon last night as customers cut back spending in light of a cost of living crisis (The Daily Mail)

Price increases in the United States and the launch of a new loyalty scheme helped McDonald’s to beat estimates for quarterly sales and profit yesterday. (The Times £)

Menthol cigarettes could be banned across the United States. A year after the Food and Drug Administration suggested the idea, it has now issued a formal proposal, which also includes flavoured cigars. (Sky News)

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