LONDON (Reuters) – British grocery store group Sainsbury (LON:)’s on Thursday saved its forecast for full-year revenue development of as much as 10% because it reported a 3.7% rise for the primary half, with strong grocery gross sales offset by a weaker efficiency on the whole merchandise.
Underneath CEO Simon Roberts, Sainsbury’s technique to match discounter Aldi’s costs on a whole lot of important gadgets and supply higher affords for members of its Nectar loyalty scheme, financed by chopping prices, is paying off.
Britain’s No. 2 grocer after Tesco (OTC:) mentioned it nonetheless anticipated 2024/25 retail underlying working revenue, its most popular revenue measure, of between 1.01 and 1.06 billion kilos ($1.31-$1.37 billion), a development of 5% to 10% versus 2023/24.
The group mentioned it additionally nonetheless anticipated to generate retail free money stream of at the very least 500 million kilos.
For the six months to Sept. 14, Sainsbury’s made retail underlying working revenue of 503 million kilos, up from 485 million kilos in the identical interval final yr.
Second-quarter like-for-like gross sales, excluding gasoline, rose 4.2%, having been up 2.7% within the first quarter.
($1 = 0.7734 kilos)
