Sainsbury, Britain's third biggest grocer, met forecasts with a 7 per cent rise in year profit, helped by the popularity of its own label ranges and its convenience store, internet and non-food offers all growing ahead of the wider market.
Chief executive Justin King said today that although the wider economic situation remained uncertain he expected the firm to make further progress in 2012/13.Sainsbury has said it is well placed to benefit from the roster of summer events -Euro 2012 soccer, the Queen's diamond jubilee, the Olympics and the Paralympics.
The group, which trails market leader Tesco and Wal-Mart's Asda by annual sales, said its profit before tax and one-off items was £712 million in the year to March 17th. That compared with analyst forecasts in a range of between £666 milion and £717 million.
Sales rose 6.8 per cent to £24.5 billion, while the dividend was increased 6.6 per cent to 16.1 pence.
Sainsbury has been benefiting from the success of its "basics" and "Taste the Difference" ranges, and "Brand Match" pricing promotion.
It has also been boosted by a drive to open stores outside its heartlands in the south of England and an expansion online as well as into convenience shops and non-food ranges like clothing and homewares.
Reuters
